Theresa is analyzing a project that currently has a projected NPV of zero.Which of the following changes that she is considering will help that project produce a positive NPV instead? Consider each change independently.
I.increase the quantity sold
II.decrease the fixed leasing cost for equipment
III.decrease the labor hours needed to produce one unit
IV.increase the sales price
A)I and II only
B)I and IV only
C)II, III, and IV only
D)I, II, and IV only
E)I, II, III, and IV

Question

Quizplus · Accepted Answer

All the options (I, II, III, and IV) would help in producing a positive NPV by either increasing revenue (I and IV) or reducing costs (II and III), which improves the project's profitability.

Theresa Is Analyzing a Project That Currently Has a Projected