Which one of the following will increase a bid price?

Question

Quizplus · Accepted Answer

An increase in the required rate of return will increase the bid price of a project as it increases the cost of capital and the amount of return required by investors. Decreasing fixed costs (A) or reducing the net working capital requirement (B) may lower the project cost, but they do not necessarily increase the bid price. Similarly, reducing the firm's tax rate (C) or increasing the salvage value (D) may lower the project cost, but they do not directly affect the bid price.

Which One of the Following Will Increase a Bid Price