Which one of the following changes offers the greatest chance of changing a project's NPV from negative to positive?

Question

Quizplus · Accepted Answer

Reducing the risk level of the project would increase the project's expected cash flows, which in turn could lead to a positive NPV. The other options (substituting preferred stock for debt, selling debt at less than par value, and decreasing the marginal tax rate) may have some impact on the project's cash flows or cost of capital, but they are unlikely to change the project's NPV from negative to positive on their own.

Which One of the Following Changes Offers the Greatest Chance