High discount rates favor
A) neither long-term nor short-term investments.
B) both long-term and short-term investments.
C) long-term investments.
D) short-term investments.

Question

Quizplus · Accepted Answer

High discount rates indicate a higher cost of capital, which makes long-term investments less attractive since the returns are received farther in the future. Therefore, a high discount rate favors short-term investments.

High Discount Rates Favor