Which of the following will have the largest dollar effect on the net present value of a 10 year investment project?
A)a decrease of $20,000 in the initial investment required with no effect on the expected salvage value in 10 years.
B)an increase of $20,000 in the expected salvage value in 10 years with no effect on the initial investment.
C)a decrease of $20,000 in both the working capital needed to start the project and the amount being released at the end of the 10 years.
D)an increase of $2,000 in the annual cash inflows from this project.

Question

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The Answer of Which of the following will have the largest dollar effect on the net present value of a 10 year investment project?
A)a decrease of $20,000 in the initial investment required with no effect on the expected salvage value in 10 years.
B)an increase of $20,000 in the expected salvage value in 10 years with no effect on the initial investment.
C)a decrease of $20,000 in both the working capital needed to start the project and the amount being released at the end of the 10 years.
D)an increase of $2,000 in the annual cash inflows from this project.

Which of the Following Will Have the Largest Dollar Effect