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:

Reciprocal Causation

A concept where personal behavior, the environment, and individual thoughts influence each other in a loop.

Complex Interplay

The intricate interaction or co-operation of multiple factors or elements in a system or situation.

Environmental Factors

External elements, including social, economic, biological, and physical conditions, that can influence an individual's or species' development and behavior.

Mating Needs

Basic biological and psychological needs related to the desire and pursuit of finding a partner for reproduction.