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You are estimating the value of a planned project, and your first step is to find the present value (PV) of all the cash inflows
You are estimating the value of a planned project, and your first step is to find the present value (PV) of all the cash inflows from that project. Which of the following would cause the project to look more appealing (have a greater NPV)?
A | The discount rate decreases. |
B | The cash flows are extended over a longer period of time, but the total dollar amount of the cash flows remains the same. |
C | The discount rate increases. |
D | Both a. and b. |
E | Both b. and c. |
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