Which of the following would DECREASE the NPV of a project being considered, other things held constant? Group of answer choices Spreading over the initial investment over the first two years rather than making it in the first year. A decrease in net working capital in year 1. A decrease in the cost of capital for the project. All of the changes would increase the NPV of a project. A shift from straight line to MACRS depreciation method.
Which of the following would DECREASE the NPV of a project being considered, other things held constant? Group of answer choices Spreading over the initial investment over the first two years rather than making it in the first year. A decrease in net working capital in year 1. A decrease in the cost of capital for the project. All of the changes would increase the NPV of a project. A shift from straight line to MACRS depreciation method.
Essentials Of Investments
11th Edition
ISBN:9781260013924
Author:Bodie, Zvi, Kane, Alex, MARCUS, Alan J.
Publisher:Bodie, Zvi, Kane, Alex, MARCUS, Alan J.
Chapter1: Investments: Background And Issues
Section: Chapter Questions
Problem 1PS
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Which of the following would DECREASE the NPV of a project being considered, other things held constant?
Group of answer choices
Spreading over the initial investment over the first two years rather than making it in the first year.
A decrease in net working capital in year 1.
A decrease in the cost of capital for the project.
All of the changes would increase the NPV of a project.
A shift from straight line to MACRS depreciation method.
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