Given a Positive Discount Rate,which One of the Following Changes

question 95

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) Reducing the amount of working capital that is needed.
• C) Spreading the total cash inflows over a longer time interval
• D) Increasing the project's estimated expenses

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Definitions:

Integrated Merger

A merger between companies at different stages in the production process of a particular industry, often aimed at reducing costs or securing supplies.

Vertical Merger

A merger between two or more companies operating at different stages in the production process of a good or service.

Horizontal Merger

A merger between companies that operate in the same industry, often leading to consolidation in the market.

Herfindahl Index

A measure of market concentration, calculated by squaring each company's market share in the industry and then summing the squares.