The Net Present Value of a Project Will Increase When

question 74

Multiple Choice

The net present value of a project will increase when the:

• A) Discount rate increases.
• B) Initial investment increases in amount.
• C) Cash inflows are received sooner.
• D) Estimated salvage value of the equipment is lowered.
• E) Tax rate applied to the project's profits is increased.

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Definitions:

Niche-Market Approach

A marketing strategy that targets a specific, well-defined segment of the market.

Market Segmentation

A strategy whereby a firm divides the total market into groups of people who have relatively similar product needs.