If an investment requires the firm to carry more current assets, that increases the investment's net present value.

Name: If an investment requires the firm to carry more current assets, that increases the investment's net present value.
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Question

If an investment requires the firm to carry more current assets, that increases the investment's net present value.​

Quizplus · Accepted Answer

Requiring a firm to carry more current assets typically increases the initial investment cost, which would decrease the net present value (NPV) as it represents an outflow of cash at the beginning of the investment.

If an Investment Requires the Firm to Carry More Current