You plan to analyze the value of a potential investment by calculating the sum of...
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Accounting
You plan to analyze the value of a potential investment by calculating the sum of the present values of its expected cash flows. Which of the following would lower the calculated value of the investment?
| The riskiness of the investment's cash flows increases. | ||
| the discount rate decreases | ||
| The total cash flow stays the same, but more of the cash flows are received in the later years and less in the earlier years. | ||
| The discount rate increases. |
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