One Method That Can Be Used to Increase the NPV

question 55

Multiple Choice

One method that can be used to increase the NPV of a project is to decrease the:

• A)project's payback.
• B)project's cost of capital.
• C)time until receipt of cash inflows.
• D)number of project IRRs.

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Definitions:

Environmental Scan

The process of systematically examining external elements affecting an organization, to identify opportunities and threats that could influence future strategies.

Strategic Planning Process

A methodical approach for setting organizational goals, determining actions to achieve those goals, and mobilizing resources to execute the actions.

SWOT Analysis

A strategic planning tool used to identify an organization's Strengths, Weaknesses, Opportunities, and Threats, helping in the development of strategic plans.

Core Competencies

Fundamental strengths and strategic advantages of an organization or individual that distinguish them from competitors.