In Computing the Net Present Value of a Project, a Manager

Multiple Choice

In computing the net present value of a project, a manager uses a cost of capital number that is too low. This error causes the manager to compute a net present value that:

A) is lower that what it in fact should be.
B) is higher that what it in fact should be.
C) has no effect on the net present value computation.
D) is undefined in mathematical terms.