Which of the Following Changes Would Be Likely to Increase

question 87

Multiple Choice

Which of the following changes would be likely to increase the NPV of a project?

• A) Increasing the firm's opportunity cost of capital
• B) Permitting a net decrease in working capital
• C) Spreading the total cash inflows over a longer interval
• D) Increasing the project's estimated expenses

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Definitions:

Constant Rate

The steady, unchanging rate at which a quantity such as interest, growth, or decay progresses over time.

Dividend Yield

The ratio of a company's annual dividend payments to its share price, expressing the dividend as a percentage of the current share price.

Dividend Yield

A financial measure that represents the yearly dividend payout by a company compared to its stock price.

Expected Growth Rate

This is the rate at which a company, economy, or investment is anticipated to grow at an average annual rate over a specified period.