Please, anybody, help!
The right answer is D. I understand that it is correct. But why answer A is incorrect?
The net present value (NPV) of a project has been calculated to be $215,000. Which one of the following changes in assumptions would decrease the NPV?
A.
Decrease the estimated effective income tax rate.
B.
Decrease the initial investment amount.
C.
Increase the estimated salvage value.
D.
Increase the discount rate.