Other Things Held Constant, Which of the Following Would Increase

question 35

Multiple Choice

Other things held constant, which of the following would increase the NPV of a project being considered?

• A) A shift from MACRS to straight-line depreciation.
• B) Making the initial investment in the first year rather than spreading it over the first 3 years.
• C) A decrease in the discount rate associated with the project.
• D) The sale of the old machine in a replacement decision at a capital loss rather than at book value.
• E) An increase in required working capital.

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Definitions:

Environmental Protection Agency (EPA)

A U.S. federal agency charged with protecting human health and the environment by writing and enforcing regulations based on laws passed by Congress.

Crisis Intervention

A method of short-term support with the aim of stabilizing individuals in acute psychological distress and preventing further deterioration of their mental health.

Duration

The length of time that something lasts or continues.

Youthful Appearance

The look or characteristics of being young, often involving traits like smooth skin, full hair, and vibrant energy.