Why does discounting at different interest rates produce different results?

When I discount a 5% venture A is more profitable than venture B but when I discount at 20% results are the opposite. Why?

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One Response to “Why does discounting at different interest rates produce different results?”

  1. Severe Dementia says:

    It is some thing to do with time value of money. As you know as interest rate increases long term projects are more badly affected than short term project. Now as i assuming that Project A is long term and project B is short term (relatively) When u discount a 5% venture A is more profitable than venture B but when u discount at 20% results are the opposite

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