Which of the Following Changes Will Increase the NPV of a Project

question 110

Multiple Choice

Which of the following changes will increase the NPV of a project?

• A) A decrease in the discount rate
• B) A decrease in the size of the cash inflows
• C) An increase in the initial cost of the project
• D) A decrease in the number of cash inflows

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Definitions:

Balance Sheet

Statement of a company’s financial position—what it owns and claims against its assets—at a particular point in time.

Balance Sheet

A financial statement that summarizes a company's assets, liabilities, and shareholders' equity at a specific point in time.

Accounting Equation

Formula that states that assets must always equal the sum of liabilities and owners’ equity.