An increase in a project's salvage value will result in an increase in the project's net present value
and internal rate of return.

Question

Quizplus · Accepted Answer

An increase in a project's salvage value increases the total cash inflows associated with the project, which in turn increases both the net present value (NPV) and the internal rate of return (IRR) by providing a higher return on the investment.

An Increase in a Project's Salvage Value Will Result in an Increase