Cite the numeric effect upon the NPV, and then explain its rationale and its significance.

A report on the following subject is available at.compose. It should be 4-6 pages long, double-spaced.

An investment’s value will decrease due to the change in NPV. Because cash flows are discounted for the future, lower discount rates can reduce current values. In other words, a higher interest rate means lower current values and therefore a lower Net Profit Per Unit (NPV). It is important because it impacts how appealing an investment can be to potential investors. An investment with a lower NPV might be less attractive than other investments that have higher NPVs.

This is a snippet preview, get a complete custom solution
Access a Complete Custom-Written Paper from Our Writers, Now!!