Question

What will happen to the net present value​ (npv) of a project if the discount rate is increased from​ 8% to​ 10%?



a. npv will always decrease.



b. npv will always increase.



c. the discount rate change will not affect npv.



d. we cannot determine the direction of the effect on npv from the information provided?

Answer 1

I don't know the answer