Problem: While computing the net present value of potential projects, organizations include the discount factor to calculate the net cash flows throughout the lifetime of the project's deliverables. Which one of the following best describes the reason for using the discount factor? Some stakeholders may ask about the utilization of the discount factor. It is a legal requirement to use the discount factor to avoid any penalties. Money loses its value as time passes due to the inflation rate and the rate of required return (opportunity cost). It can offer a better reasoning process while more than one project is assessed.