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Which of the following would increase the net present value of a project? |
Which of the following would increase the net present value of a project? Since the formula is A decrease in the discount rate. Net investment is a present factor, it is not discounted. Depreciation and accounts payable are not cash items. d Decrease in discount rate. (d) Assuming that you are deriving the NPV from the future value the latter is multiplied by the discount rate. The lower the discount rate the higher the NPV. |
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