Given a Positive Discount Rate, Which One of the Following

question 59

Multiple Choice

Given a positive discount rate, which one of the following changes would increase the NPV of a project?

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

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Definitions:

Information And Communication

Systems and processes used to collect, process, store, and distribute information for facilitating decision making and control in an organization.

Business Goals

Objectives or targets that a company aims to achieve, which can be short-term or long-term, and are part of strategic planning.

Vulnerabilities

Weaknesses or gaps in a system's security that can be exploited to cause harm or unauthorized access.

Bank Reconciliation

The process of matching and comparing figures from the accounting records against those presented on a bank statement.