Other Things Held Constant,which of the Following Would Increase the NPV

question 6

Multiple Choice

Other things held constant,which of the following would increase the NPV of a project being considered?

• A) A shift from straight-line to MACRS depreciation.
• B) Making the initial investment in the first year rather than spreading it over the first three years.
• C) An increase in the discount rate associated with the project.
• D) An increase in required net operating working capital.
• E) The project would decrease sales of another product line.

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Definitions:

Level of Risk

Indicates the potential for loss or harm which can result from a given action, activity, or decision.

Type I Error

The probability of rejecting a null hypothesis when it is true.

Gender

A social construct that refers to the roles, behaviors, activities, and attributes that a given society considers appropriate for men and women.

Respondents

Individuals or entities who provide answers or responses in a survey or study.