Of the four options listed below and encountered in project evaluation, which one is likely to make a project seem less attractive?
A) underestimating negative cash flows
B) overestimating positive cash flows
C) using a higher cost of capital
D) ignoring the time value of money

Question

Quizplus · Accepted Answer

Using a higher cost of capital makes a project seem less attractive because it increases the discount rate, which in turn reduces the present value of future cash flows, making the project appear less profitable or more costly.

Of the Four Options Listed Below and Encountered in Project