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:

Cash Payments Journal

An accounting ledger that tracks all cash payments made by a business, including expenses, debt payments, and purchases.

Control Account

A general ledger account that summarizes and controls the detailed data recorded in subordinate ledger accounts.

Subsidiary Ledger

A detailed ledger containing all account details and transactions for individual component accounts that roll up into a general ledger summary account.

Special Journals

Accounting books designed for recording specific types of transactions in a detailed and efficient manner.