All Else Constant,the Net Present Value of a Typical Investment

question 77

Multiple Choice

All else constant,the net present value of a typical investment project increases when:

• A) the discount rate increases.
• B) each cash inflow is delayed by one year.
• C) the initial cost of a project increases.
• D) the rate of return decreases.
• E) all cash inflows occur during the last year of a project's life instead of periodically throughout the life of the project.

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Definitions:

Managing Activities

The process of planning, organizing, directing, and controlling resources to achieve specific goals within an organization or project.

Employee Empowerment

The practice of giving employees the authority and autonomy to make decisions and take actions that affect their work.

Knowledge Workers

Employees whose primary capital is knowledge, such as programmers, pharmacists, architects, engineers, scientists, design thinkers, public accountants, lawyers, and academics, whose job is to "think for a living."