.compose a 4-6 page report, double-spaced, on the following topic: if
The effect of the change in NPV is a decrease in the value of the investment. This decrease occurs because when discounting cash flows for future years, higher discount rates will reduce present values more than lower discount rates. Thus, increasing the interest rate will result in lower present values and subsequently a lower NPV. This is significant as it affects how attractive an investment is to potential investors. A lower NPV may make an investment less appealing compared to other potential investments with higher NPVs.