此处为何选B，A和C为什么不对？

NO.PZ202209270100000206 问题如下 Nigel French, analyst Taurus Investment Management, is analyzing ArchwTechnologies, a manufacturer of luxury electronic auto equipment, the request of his supervisor, LukWright. Frenis asketo evaluate Archway’s profitability over the past five years relative to its two main competitors, whiare locatein fferent countries with significantly fferent tstructures. Frenbegins assessing Archway’s competitive position within the luxury electronic auto equipment instry using Porter’s five forces framework. A summary of French’s instry analysis is presentein Exhibit 1.Frennotes thfor the yejust en(2019), Archway’s COGS w30% of sales. To forecast Archway’s income statement for 2020, Frenassumes thall companies in the instry will experieninflation rate of 8% on the COGS. Exhibit 2 shows French’s forecasts relating to Archway’s prianvolume changes.After putting together income statement projections for Archway, Frenforecasts Archway’s balansheet items. He uses Archway’s historicefficienratios to forecast the company’s working capitaccounts. Baseon his financiforecast for Archway, Frenestimates a terminvalue using a valuation multiple baseon the company’s average price-to-earnings multiple (P/E) over the past five years. Wright scusses with Frenhow the terminvalue estimate is sensitive to key assumptions about the company’s future prospects. Wright asks French: “Whchange in the calculation of the terminvalue woulyou make if a technologicvelopment thwoulaersely affeArchwwforecast to occur sometime beyonyour financiforecast horizon?” The most appropriate response to Wright’s question about the technologicalvelopment is to: A.increase the requirereturn. B.crease the price-to-earnings multiple. C.crease the perpetugrowth rate. B is correct. If the future growth or profitability of a company is likely to lowerththe historicaverage (in this case, because of a potentitechnologicalvelopment), then the target multiple shoulreflea scount to the historicalmultiple to reflethis fferenin growth anor profitability. If a multiple isuseto rive the terminvalue of a company, the choiof the multiple shoule consistent with the long-run expectations for growth anrequirereturn.Frentells Wright he believes thsua technologicvelopment coulhaveaerse impaon Archwbeyonthe forecast horizon. 由于技术进步的负面影响，所以原来预测的earning高了。这个时候需要把Earning降低，P/E中分母降低，整体应该是上升的呀