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Other Things Held Constant, Which of the Following Would Increase

Question 3

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 three years.
C) A decrease in the discount rate associated with the project.
D) An increase in required net working capital.
E) The project would decrease sales of another product line.

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