Question: A clinics management has estimated the net present value (NPV) for a proposed project at $15,000. All else held constant, which of the following would
A clinics management has estimated the net present value (NPV) for a proposed project at $15,000. All else held constant, which of the following would increase the projects estimated NPV?
a. An increase in the initial investment cost
b. A two-year delay in the receipt of the projects initial net operating cash flows (assuming the expected cash flows are positive)
c. An increase in the projects risk An increase in the corporate cost of capital
d. None of the above answers is correct
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