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Alex_Xolod [135]
3 years ago
5

All else constant, the net present value of a typical investment project increases when:

Business
1 answer:
nekit [7.7K]3 years ago
3 0

Answer:

The correct answer is letter "B": The rate of return decreases.

Explanation:

Net Present Value or NPV is a mathematical calculation used to determine if a project could be profitable or not. NPV is obtained by subtracting the present value of outflows from the present value of inflows, In case NPV is positive, it is expected a project will provide the firm profits, while a negative NPV implies the company incurring in losses.

<em>The Rate of Return (RoR) has an inverse relation with the NPV meaning if the RoR decreases the NPV will increase and vice versa.</em>

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$8,000 ordinary loss and $3,000 short-term capital loss

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3 years ago
How to set up a small business plan for loan​
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5 0
3 years ago
Read 2 more answers
Although relative factor costs may make a country look attractive as a location for performing a manufacturing activity, the fir
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4 years ago
Sheffield Corp. sells its product for $70 per unit. During 2019, it produced 60000 units and sold 50000 units (there was no begi
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Answer:

$40

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