Which of the following attributes will lead to higher NPV, holding all else constant? i) higher...
Which of the following attributes will lead to higher NPV, holding all else constant?
i) higher expected number of units sold
ii) higher inflation in the price of goods to be sold, but not in the costs incurred
iii) diseconomies of scale (reduced cost efficiency as a result of a business expansion)
iv) increased competition risk
A. i
B. ii
C. i and ii
D. i, ii, and iii
Homework Answers
The attributes that will lead to higher NPV are:
i) higher expected number of units sold
ii) higher inflation in the price of goods to be sold, but not in the costs incurred
The answer is thus-
C. i and ii
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