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:

Electricity Generation

The process of producing electrical power from various energy sources, such as fossil fuels, nuclear power, or renewable energy sources.

Energy Information Administration

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Negative Externalities

Negative externalities are detrimental effects suffered by a third party due to an economic activity, where the cost of these effects is not reflected in the market price.

Energy Production

The process of generating electricity or other forms of energy through various sources like fossil fuels, nuclear power, or renewable sources.