Which One of the Following Increases the Net Present Value

question 3

Multiple Choice

Which one of the following increases the net present value of a project?

• A)an increase in the required rate of return
• B)an increase in the initial capital requirement
• C)a deferment of some cash inflows until a later year
• D)an increase in the aftertax salvage value of the fixed assets
• E)a reduction in the final cash inflow

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Definitions:

Expert System

An expert system is a computer program that uses artificial intelligence to emulate the decision-making abilities of a human expert.

Five-Point Scale

A commonly used rating system with five options that allow individuals to express a range of judgments about a particular subject.

Participative Styles

Leadership or decision-making approaches that involve team members or stakeholders in the process of making decisions.

Vroom-Jago Model

A decision-making framework that helps leaders determine how much involvement their teams should have in the decision-making process, based on the situation's complexity and importance.