For two conventional projects whose cumulative cash flows are identical, the higher the discount rate, the more valuable will be the proposal with the early cash flows. ( TRUE OR FALSE ) ?

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I am apologies to answer this question wait from answers specialist 

The statement is >>>>>>>>>>>>>>>>>>> True

At higher discount rate, the more valuable project will be that which earns early cash flows. It means that the cash flows in early periods would have more value than the project which will have cash flows in later periods.

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Good Question thnak you. The answer is true, especially when talking about early cash flows, and higher IRR. They are the two factors that we could use when selecting between projects. Financial Risk  could be related and measured using the Interanl Rate of Return. Thank You to the

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True. If the project generates returns with higher discounting rate. It ensures better returns with and lower payback period ensures faster recovery of investment.

It's not obviously why two identical projects would attract different discount rates.

Early cash flows are naturally more valuable than late ones.  It would take a vast difference in discount rate to make a late cashflow more attractive than an early one. 

Always remember that a cashflow is real, and the discount rate is just something that somebody makes up.   You can't make pay the rent with a discount rate.

I apologize for the answer I leave the answer to the specialists the experts in the this field that's not my area.

False. Discount the second project at a higher rate and it will end up interest eating your free-cash flows cumulatively for a lower present-valued proposal. What matters most is the cashflows lined-up in your projections year-by-year be stated as it is now (present value) because you are comparing it with your cash outlay now (project) and what returns you ought to receive must be greater.

Hello Team,

Discounted cash flow (DCF) is a cash flow summary that it has to be adjusted to reflect the present value of money. Discounted cash flow (DCF) analysis identifies the present value of an individual asset or portfolio of assets. This is equal to the discounted value of expected net future cash flows, with the discount reflecting the cost of waiting, risk and expected future inflation. Discounted cash flow (DCF) analysis is applied to investment project appraisal and corporate valuation. By combining assessments of both opportunity cost and risk, a discount rate is calculated for the analysis of present value of anticipated future cash flows. Free cash flow is the remaining amount of operating cash flow for the shareholders, after covering investments in fixed assets and working capital needs (WCN). Free cash flow is important because it allows a business to pursue opportunities that enhance shareholder value. One key measure of the value of a firm’s equity is considered the present value of all free cash flows. Opportunity cost is significant because any financial decision must be measured against a default low-risk investment alternative or the inflation rate. Risk becomes a significant factor when the financial decision being considered involves some statistically significant probability of loss. Calculation of risk factors beyond opportunity cost can often be very complex and imprecise, requiring the use of actuarial analysis methods and in-depth market analysis. When risk is included in discounted cash flow (DCF) analysis it is generally done so according to the premise that investments should compensate the investor in proportion to the magnitude of the risk taken by investing. A large risk should have a high probability of producing a large return or it is not justifiable.

Regards,

Saiyid