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:

Performance

The act of carrying out or accomplishing an action, task, or function.

Punishment Consistent

The reliable and systematic application of a negative consequence following an undesired behavior in order to decrease its occurrence.

More Severe

Describing a condition or situation that is of greater intensity, seriousness, or urgency than previously noted or compared to others.

Observational Learning

A form of learning that occurs through observing the behavior of others and the consequences of that behavior.