Which of the following is an acceptable reason for lowering the discount rate used to evaluate a project? Future costs were underestimated. A lower discount rate will make their present value larger and correct the error. O The project involved preserving endangered species and a lower discount rate gave it a higher present value. O None of the reason is correct The inflation rate is not expected to be as large. The beneficiaries of the project prefer present to future consumption more than was originally estimated. O All reasons are correct

Which of the following is an acceptable reason for lowering the discount rate used to evaluate a project? Future costs were underestimated. A lower discount rate will make their present value larger and correct the error. O The project involved preserving endangered species and a lower discount rate gave it a higher present value. O None of the reason is correct The inflation rate is not expected to be as large. The beneficiaries of the project prefer present to future consumption more than was originally estimated. O All reasons are correct

ENGR.ECONOMIC ANALYSIS

14th Edition

ISBN:9780190931919

Author:NEWNAN

Publisher:NEWNAN

Chapter1: Making Economics Decisions

Section: Chapter Questions

Problem 1QTC

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