The net present value of a project will increase if:
A) the required rate of return increases.
B) the initial capital requirement increases.
C) some of the cash inflows are deferred until a later year.
D) the aftertax salvage value of the fixed assets increases.
E) the final cash inflow decreases.

Question

The net present value of a project will increase if: 
A) the required rate of return increases. 
B) the initial capital requirement increases. 
C) some of the cash inflows are deferred until a later year. 
D) the aftertax salvage value of the fixed assets increases. 
E) the final cash inflow decreases.

Quizplus · Accepted Answer

The Answer is D

The Net Present Value of a Project Will Increase If