Final answer:
A decrease in the discount rate used for calculating the present value would make a planned project look more appealing by increasing the present value of future cash flows.
Step-by-step explanation:
When determining the present value of cash flows from a planned project, certain factors can make the project appear more attractive. The option that would cause the project to look more appealing is a decrease in the discount rate. A lower discount rate increases the present value of future cash flows, making the investment seem more profitable. Conversely, an increase in the discount rate, an increase in the initial investment, or a decrease in the expected cash flows would all make the project less appealing. For example, suppose you have future cash flows from a project, and you're using a discount rate of 10% to find the present value. If the discount rate decreases to 5%, those same future cash flows will have a higher present value, because you are discounting them by a smaller rate, thus improving the project's attractiveness. It is crucial to remember that in the real world, these are estimated figures and not hard data, but the present discounted value serves as a critical tool in analyzing investments and their potential worth.