Which of the Following Changes Will Increase the NPV of a Project

question 95

Multiple Choice

Which of the following changes will increase the NPV of a project?

• A)a decrease in the discount rate.
• B)a decrease in the size of the cash inflows.
• C)an increase in the initial cost of the project.
• D)a decrease in the number of cash inflows.

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Definitions:

Traditional Values

Socially inherited norms and beliefs that are passed down through generations, typically emphasizing family roles, religion, and moral views.

Equity Theory

A theory of motivation that suggests fairness in the balance between an individual's inputs and outputs in a relationship contributes to their satisfaction.

Social Exchange Theory

A theory that suggests social behavior is the result of an exchange process aiming to maximize benefits and minimize costs.

Attachment Theory

A psychological model that describes the dynamics of long-term and short-term interpersonal relationships between humans.