One Method That Can Be Used to Increase the NPV

question 10

Multiple Choice

One method that can be used to increase the NPV of a project is to decrease the:

• A) project's payback.
• B) profitability index.
• C) time until receipt of cash inflows.
• D)number of project IRRs.

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Definitions:

Contracting Party

One of the entities involved in a legal agreement or contract, who agrees to fulfill certain obligations.

Performance

The execution, fulfillment, or accomplishment of terms as specified in a contract or agreement.

Material Breach

A significant violation of a contract that allows the non-breaching party to terminate the contract and seek damages.

Obligations

Legal or moral duties that an individual or entity is bound to perform or uphold.