Which of the following changes offer the greatest chance of changing a project's NPV from negative...
Which of the following changes offer the greatest chance of changing a project's NPV from negative to positive?
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Which one?
Homework Answers
Ans A) A reduction in project risk.
A reduction in project risk offer the greatest chance of changing a project's NPV from negative to positive. Reduction in risk leads to higher present value of cash flow. Ultimately net cash flows increases to positive due to increase in cash flows.
Net Cash Flow = Cash Inflows - Cash outflows.
Add Answer to:
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