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.

---

Definitions:

Clear Focus

The act or state of concentrating or maintaining a sharp visual or mental clarity.

Ocular Lens

The transparent structure inside the eye that focuses light rays onto the retina to create clear images.

Working Distance

The distance between the objective lens of a microscope and the specimen being observed.