You Have Determined the Profitability of a Planned Project by Finding

question 66

Multiple Choice

You have determined the profitability of a planned project by finding the present value of all the cash flows form that project.Which of the following would cause the project to look more appealing in terms of the present value of those cash flows?

• A) The discount rate decreases.
• B) The cash flows are extended over a longer period of time,but the total amount of the cash flows remains the same.
• C) The discount rate increases.
• D) Answers b and c above.
• E) Answers a and b above.

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Definitions:

Adjusted Trial Balance

A list of all accounts and their balances after adjustments have been made for the end of an accounting period.

Account Balances

The amounts of money in a company's financial accounts at a specific point in time.

Unadjusted Trial Balance

A list of all accounts and their balances in a company's ledger before any adjusting entries are made.