Which of the Following Changes Would Be Likely to Increase

question 87

Multiple Choice

Which of the following changes would be likely to increase the NPV of a project?

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

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Definitions:

Independent Variables

Variables in an analysis that are manipulated or categorized to determine their effect on dependent variables.

Sample Size

The number of observations or elements included in a sample drawn from a population for analysis.

Estimated Multiple Regression

A statistical technique that estimates the relationship between a dependent variable and multiple independent variables.

Regression Plane

The regression plane is a three-dimensional graphical representation used in multiple regression analysis that shows the relationship between two independent variables and one dependent variable.