Other Things Held Constant, Which of the Following Would Increase

Multiple Choice

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

A) A shift from MACRS to straight-line depreciation.
B) Making the initial investment in the first year rather than spreading it over the first 3 years.
C) A decrease in the discount rate associated with the project.
D) The sale of the old machine in a replacement decision at a capital loss rather than at book value.
E) An increase in required working capital.