Do investors tend to decrease required rates of return over time for projects with longer lives?

Investors typically do not decrease required rates of return for projects with longer lives; in fact, they often require a higher rate to compensate for increased uncertainty and risk over extended periods. Longer-term projects may face more variability in cash flows, economic conditions, and market dynamics, leading investors to demand a greater return to offset these risks. Thus, while the required rate of return can fluctuate based on various factors, longer project lifespans generally justify a higher return requirement rather than a decrease.