You Have Just Calculated the Present Value of the Expected

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 improve the present value of your cash flows?

A) extend the cash flows over a longer period of time
B) increase the discount rate
C) decrease the discount rate
D) extend the cash flows over a longer period of time, and decrease the discount rate