Multiple Choice
Given a positive discount rate, which one of the following changes would increase the NPV of a project?
A) Increasing the firm's opportunity cost of capital
B) Realizing a net decrease in working capital
C) Spreading the total cash inflows over a longer time interval
D) Increasing the project's estimated expenses
Correct Answer:

Verified
Correct Answer:
Verified
Q36: Accurate capital budgeting analysis depends on total
Q49: In the MACRS depreciation schedules,the depreciation percentage
Q55: The opportunity cost of an asset:<br>A) should
Q56: Offer examples to confirm that firms do
Q57: Net working capital is expected to increase
Q58: Calculate the present value of the depreciation
Q61: If the adoption of a new product
Q63: The rationale for not including sunk costs
Q64: The income statement of an all-equity firm
Q67: The likely effect of discounting nominal cash