Answer
If the company’s discount rate was 16% instead of 14%, the project’s net present value would be lower because the discount factors would be smaller.
Work Step by Step
--
Managerial Accounting (15th Edition)
by Garrison, Ray; Noreen, Eric, Brewer, Peter
Published by
McGraw-Hill Education
ISBN 10:
007802563X
ISBN 13:
978-0-07802-563-1
Chapter 13 - Capital Budgeting Decisions - Questions - Page 606: 13-9
Update this answer!
You can help us out by revising, improving and updating this answer.
Update this answerAfter you claim an answer you’ll have 24 hours to send in a draft. An editor will review the submission and either publish your submission or provide feedback.
