The relationship between a Net Present Value NPV and a disco

The relationship between a Net Present Value (NPV) and a discount rate could best be described as?

Direct

Random

Stochastic

Indirect

Indeterminant

Solution

There is an indirect relationship between a net present value and a discount rate as the discount rate increases the cashflows will get influenced which will influence the net present value. there is always an inverse relationship between the net present value and discount rate as its not direct it is better considered as indirect relationship between net present value and discount rate.