Which TWO of the following would reduce the net present value of the investment to the business?


A manufacturing company is considering a new investment project.

Which TWO of the following would reduce the net present value of the investment to the business?
A . A rise in the scrap value of the project at the end of its life.
B . A reduction in the expected level of future sales.
C . A rise in interest rates.
D . A fall in the initial capital cost of the project
E . An expected fall in the future price of components used by the business

Answer: D,E

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