All Else Constant,the Net Present Value of a Typical Investment

question 77

Multiple Choice

All else constant,the net present value of a typical investment project increases when:

• A) the discount rate increases.
• B) each cash inflow is delayed by one year.
• C) the initial cost of a project increases.
• D) the rate of return decreases.
• E) all cash inflows occur during the last year of a project's life instead of periodically throughout the life of the project.

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Definitions:

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