Which of the Following Changes, If of a Sufficient Magnitude

question 94

Multiple Choice

Which of the following changes, if of a sufficient magnitude, could turn a negative NPV project into a positive NPV project?

• A)a decrease in the estimated annual sales.
• B)an increase in the discount rate.
• C)an increase in the initial investment.
• D)a decrease in the fixed costs.

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Definitions:

Granting Claims

The process of approving or acknowledging requests, often in legal, financial, or insurance contexts, based on the evaluation of the evidence or validity of the claim.

Assign Blame

The act of identifying and attributing responsibility for a mistake, fault, or wrongdoing to a person or entity.

Granting Claims

The process of recognizing and approving requests or demands, often in a legal or financial context.

Good News

Information or messages that are positive, favorable, or beneficial in nature, often leading to happiness or satisfaction.