Which of the Following Would Decrease the Net Present Value

question 151

Multiple Choice

Which of the following would decrease the net present value of a project?

• A) A decrease in the income tax rate.
• B) A decrease in the initial investment.
• C) An increase in the useful life of the project.
• D) An increase in the discount rate.

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Definitions:

ANOVA Table

A tabular representation used in analysis of variance that summarizes the source of variation, degrees of freedom, sum of squares, mean squares, and the F-statistic.

F-ratio

A statistical measure used in the analysis of variance (ANOVA) to determine the ratio of variance between groups to the variance within groups.

P-value

A statistical measure that helps scientists determine the significance of their research results, indicating the probability of observing the obtained results if the null hypothesis were true.

SSE

Sum of Squared Errors, a measure used in statistics to describe the amount by which the observations differ from their mean value.