An international project's NPV is _________ related to consumer demand and _________ related to the project's salvage value.

Question

Quizplus · Accepted Answer

The NPV (Net Present Value) of a project is positively related to consumer demand because higher demand can lead to higher revenues and cash flows. It is also positively related to the project's salvage value because a higher salvage value increases the terminal cash flow, thus increasing the NPV.

An International Project's NPV Is _________ Related to Consumer Demand