Other Things Held Constant, Which of the Following Would Increase

question 18

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 three years.
• C) A decrease in the discount rate associated with the project.
• D) An increase in required net working capital.
• E) The project would decrease sales of another product line.

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Definitions:

Employee Turnover

The rate at which employees leave a company and are replaced by new employees, often used as a metric to assess corporate health and job satisfaction.

Political Battles

Conflict or struggles for power, influence, or resources within organizational, governmental, or societal contexts.

Fundamental Attribution Error

The tendency to overestimate the effect of personality or disposition and underestimate the effect of the situation on other people's behavior.

Self-Serving Bias

The tendency to attribute positive outcomes to one's own actions and negative outcomes to external factors.