Theresa Is Analyzing a Project That Currently Has a Projected

Multiple Choice

Theresa is analyzing a project that currently has a projected NPV of zero. Which one of the following changes that she is considering is most apt to cause that project to produce a positive NPV instead? Consider each change independently.

A) Decrease the sales price
B) Increase the materials cost per unit
C) Decrease the labor hours per unit produced
D) Decrease the sales quantity
E) Increase the amount of the initial investment in net working capital