Which of the following may bias the NPV calculation upward?
A) Failure to adjust cash flows but not the discount rate for inflation.
B) Adjusting lease rates where there are long term agreements.
C) Increasing the income tax rate by the inflation rate.
D) Failure to expand working capital.
E) Adjusting wage expense if a union contract with a lower rate is in effect.
Correct Answer:
Verified
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