Decrease the net present value of a project

Assignment Help Financial Management
Reference no: EM131061179

Which one of the following will decrease the net present value of a project?

A) increasing the value of each of the project's discounted cash inflows

B) moving each of the cash inflows back to a later time period

C) decreasing the required discount rate

D) decreasing the project's initial cost at time zero

E) increasing the amount of the final cash inflow

Reference no: EM131061179

Questions Cloud

What is the largest value representable using this scheme : Propose a change to the scheme that keeps it simple but increases the number of distinct values representable.
Why the short-term project might be ranked higher under npv : om the e-Activity, analyze the reasons why the short-term project that you have chosen might be ranked higher under the NPV criterion if the cost of capital is high, while the long-term project might be deemed better if the cost of capital is low.
Change in net working capital resulting from the addition : You are considering adding a microbrewery onto one of your firm's existing restaurants. This will entail an increase in inventory of $8000, an increase in accounts payables of $2500, and an increase in property, plant, and equipment of $40,000. All o..
Cost of common equity-the future earnings and dividends : Cost of Common Equity The future earnings, dividends, and common stock price of Carpetto Technologies Inc. are expected to grow 4% per year. Carpetto's common stock currently sells for $30.00 per share; its last dividend was $2.50; and it will pay a ..
Decrease the net present value of a project : Which one of the following will decrease the net present value of a project?
What are the incremental free cash flows : CathFoods will release a new range of candies which contain antioxidants. New equipment to manufacture the candy will cost $2 million, which will be depreciated by straight-line depreciation over five years. If CathFood's marginal tax rate is 35%, wh..
Statements is correct concerning the payback analysis : A project has a required payback period of three years. Which one of the following statements is correct concerning the payback analysis of this project?
Why do broadcast radio stations use narrow band transmission : How would a radio work if, say, broadcast stations used Frequency Hopping Spread Spectrum or Direct Sequence Spread Spectrum? Explain your answer.
What is the net amount of funds from each loan : Your firm is considering two one-year loan options for a $478,000 loan. The first carries fees of 2.5% of the loan amount and charges interest of 3.9% of the loan amount. The other carries fees of 1.7% of the loan amount and charges interest of 4.4% ..

Reviews

Write a Review

Financial Management Questions & Answers

  Foreign company acquisition

Acquisition by a foreign company and the effects of that decision and the results of foreign exchange in Euro and the exchange rate differences.

  Financial management for profit and non profit organizations

In this essay, we are going to discuss the issues of financial management in a non-profit organisation.

  Method for estimating a venture''s value

Evaluate venture's present value, cash and surplus cash and basic venture capital.

  Replacement analysis

This document show the Replacement Analysis of modling machine. Is replacement give profit to company or not?

  Business finance task - capital budgeting

Your company is considering using the payback period for capital-budgeting. Discuss the advantages and disadvantages of this technique.

  Analysis of the investment

In this project, you will focus on one of these: the additional cost resulting from the purchase of an apple press (a piece of equipment required to manufacture apple juice).

  Conduct a what-if analysis

Review the readings and media for this unit, including the Anthony's Orchard case study media. Familiarise yourself with the Anthony's Orchard company and its current situation.

  Determine operational expenditures

Organisations' behaviour is guided by financial data. In the short term, such data will help determine operational expenditures; in the long term, historical data may help generate forecasts aimed at determining strategic plans. In both instances.

  Personal financial management

How much will you have left over each half year if you adopt the latter course of action?

  Sources of finance for expansion into new foreign markets

A quoted company is considering several long-term sources of finance for expansion into new foreign markets.

  Long term financial planning

This assignment is designed for analyze Long term financial planning begins with the sales forecast and the key input in the long term fincial planning.

  Explain the role of fincial manager

This assignment explain the role of fincial manager, function of manger. And what are the motives of financial manager.

Free Assignment Quote

Assured A++ Grade

Get guaranteed satisfaction & time on delivery in every assignment order you paid with us! We ensure premium quality solution document along with free turntin report!

All rights reserved! Copyrights ©2019-2020 ExpertsMind IT Educational Pvt Ltd