You Have Just Calculated the Present Value of the Expected

question 159

Multiple Choice

You have just calculated the present value of the expected cash flows of a potential investment. Management thinks your figures are too low. Which of the following actions would increase the present value of your cash flows?

• A)Assume a longer stream of cash flows of the same amount
• B)Increase the discount rate
• C)Decrease the discount rate
• D)a and c

---

Definitions:

Overestimated

The act of appraising something or someone too highly or beyond its actual value or capacity.

Relationship-oriented

An approach or behavior that emphasizes the importance of personal connections and relationships in problem-solving or management.

Team Leader

An individual who provides guidance, instruction, direction, and leadership to a group of individuals (the team) for the purpose of achieving a key result or group of aligned results.

Host

An individual or organization that provides the infrastructure and services to support a website or any other service on the internet.