A Project's Net Present Value Is Increased If

question 174

Multiple Choice

A project's net present value is increased if

• A)the CCA rate is decreased.
• B)the discount rate is increased.
• C)the CCA rate is increased.
• D)the company's net income is negative during the life of the project.
• E)the rate of inflation rises.

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Definitions:

Unlimited Liability

A legal obligation where a business owner or partner is personally responsible for all of the debts of the business.

Mutual Agency

A business principle where each partner in a partnership can act on behalf of the partnership, binding it contractually.

Partnership Accounting

The system of accounting that deals with financial transactions and record-keeping for business partnerships.

Information Tax Return

A document that reports income, expenses, and other pertinent tax information, typically filed with a governmental tax authority.