An international project's NPV is ____ related to consumer demand and ____ related to the project's salvage value.

Question

Quizplus · Accepted Answer

The Net Present Value (NPV) of a project is positively related to consumer demand because higher demand can lead to higher revenues and cash flows. It is also positively related to the project's salvage value because a higher salvage value increases the terminal cash flow, thus increasing the NPV.

An International Project's NPV Is ____ Related to Consumer Demand