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.

Intermediate Financial Management (MindTap Course List)

13th Edition

ISBN:9781337395083

Author:Eugene F. Brigham, Phillip R. Daves

Publisher:Eugene F. Brigham, Phillip R. Daves

Chapter13: Capital Budgeting: Estimating Cash Flows And Analyzing Risk

Section: Chapter Questions

Problem 13MC

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Other things held constant, which of the following would increase the NPV of a project being considered? A shift from straight-line depreciation to MACRS Making the initial investment in the first year rather than spreading it out over the first three years An increase in the discount rate associated with the project An increase in required net operating working capital None of the above
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