Analyze the value of potential investment

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Reference no: EM132033935

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?

a. The discount rate decreases

b. the total amount of cash flows remains the same, but less of the cash flows are received in the earlier and more are received in the later years

c. the riskiness of the investment's cash flows decreases

d. the total amount of cash flows remains the same, but more of the cash flows are received in the earlier year and less are received in the later years.

Reference no: EM132033935

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