General Studies · Financial Management
Which statement accurately describes the relationship between Net Present Value (NPV) and the discount rate for a conventional project?
Verified Solution4 OptionsUpdated: October 2026👁️1 View
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- 1The NPV increases as the discount rate increases
- 2The NPV decreases as the discount rate increases✓
- 3The NPV is completely independent of the discount rate
- 4The NPV remains constant at all rates above the IRR
Correct answer
The NPV decreases as the discount rate increases
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