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Other Things Held Constant,which of the Following Would Increase the NPV

Question 6

Multiple Choice

Other things held constant,which of the following would increase the NPV of a project being considered?


A) A shift from straight-line to MACRS depreciation.
B) Making the initial investment in the first year rather than spreading it over the first three years.
C) An increase in the discount rate associated with the project.
D) An increase in required net operating working capital.
E) The project would decrease sales of another product line.

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