One method that can be used to increase the NPV of a project is to decrease the:
A) project's payback.
B) profitability index.
C) time until receipt of cash inflows.
D)number of project IRRs.

Question

Quizplus · Accepted Answer

The time until receipt of cash inflows is a major factor in determining the present value of future cash flows, and therefore the NPV of a project. By decreasing the time until receipt of cash inflows, the present value of those cash flows will increase, potentially increasing the overall NPV of the project. This can be achieved by implementing strategies such as speeding up production processes or shortening the project timeline. Therefore, decreasing the time until receipt of cash inflows is the best choice for increasing the NPV of a project.

One Method That Can Be Used to Increase the NPV