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You have estimated the value of a planned project by finding the present value of all the cash inflows from that project. Which of the
You have estimated the value of a planned project by finding the present value of all the cash inflows from that project. Which of the following would cause the project to look more appealing (have a greater net present value)?
| The discount rate decreases. | ||
| The cash flows are extended over a longer period of time, but the total dollar amount of the cash flows remains the same. | ||
| The discount rate increases. | ||
| Answers (a) and (b) are correct. | ||
| Answers (b) and (c) are correct. |
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