Which of the Following Will Have the Largest Dollar Effect

question 63

Multiple Choice

Which of the following will have the largest dollar effect on the net present value of a 10 year investment project?

• A)a decrease of $20,000 in the initial investment required with no effect on the expected salvage value in 10 years.
• B)an increase of $20,000 in the expected salvage value in 10 years with no effect on the initial investment.
• C)a decrease of $20,000 in both the working capital needed to start the project and the amount being released at the end of the 10 years.
• D)an increase of $2,000 in the annual cash inflows from this project.

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Definitions:

Desired Future Selves

Refers to the aspirational visions individuals have for who they want to become in the future, including their goals, ambitions, and desired attributes.

Self-esteem

One's overall evaluation or appraisal of one's own worth.

Competence

Refers to having the necessary ability, knowledge, or skill to perform a task successfully.

Meaning

The significance, purpose, or value that an individual assigns to an experience, concept, or aspect of their life.