Questions

MSB-250-300-002 Topic 11 Quiz

Single choice

Which of the following describes when the net present value is smaller?

Options

A.the required rate is lower

B.cash inflows are pushed farther into the future

C.the initial outlay is decreased

D.none of these

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Step-by-Step Analysis

Consider the question about when the net present value (NPV) is smaller. Option 1: 'the required rate is lower' — A lower discount rate increases the present value of future cash inflows, which tends to raise NPV r......Login to view full explanation

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