Question: ( b ) A two - year delay in the receipt of the project's initial net operating cash flows would decrease the NPV because cash
b A twoyear delay in the receipt of the project's initial net operating cash flows would decrease the NPV because cash flows received later are worth less in present value terms.
c An increase in the project's risk would likely increase the required rate of return, thus decreasing the NPV
d An increase in the corporate cost of capital would raise the discount rate, thereby reducing the NPV
e None of these options would increase the NPV
Therefore, the correct answer is e None of these answers is correct.
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