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 two-year 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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