(12A) Other Things Held Constant, Which of the Following Would

question 21

Multiple Choice

(12A) . Other things held constant, which of the following would increase the NPV of a project being considered?

• A) A shift from straight-line to MACRS depreciation.
• B) Making the initial investment in the first year rather than spreading it over the first three years.
• C) An increase in the discount rate associated with the project.
• D) An increase in required net operating working capital.
• E) The project would decrease sales of another product line.

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Definitions:

Formal Organizations

Structured groups established for a specific set of objectives or tasks, characterized by clear hierarchies and rules.

Social Change

The alteration over time in the structures, cultural patterns, and norms of a society.

Total Institutions

Places where people are separated from the rest of society and controlled by the institution in all aspects of their lives, as defined by Erving Goffman.

Coercive Organizations

Organizations where membership is not voluntary and is often maintained through force or other forms of coercion, such as prisons or the military.