Which one of the following increases the net present value of a project?
A)an increase in the required rate of return
B)an increase in the initial capital requirement
C)a deferment of some cash inflows until a later year
D)an increase in the aftertax salvage value of the fixed assets
E)a reduction in the final cash inflow

Question

Quizplus · Accepted Answer

An increase in the aftertax salvage value of the fixed assets will increase the cash flow in the final year and thus increase the net present value of the project.

Which One of the Following Increases the Net Present Value