Largest dollar effect on the net present value

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Reference no: EM13775563

Which of the following will have the largest dollar effect on the net present value of a 10 year investment project?

A decrease of $20,000 in the initial investment required with no effect on the expected salvage value in 10 years.

An increase of $20,000 in the expected salvage value in 10 years with no effect on the initial investment.

A decrease of $20,000 in both the working capital needed to start the project and the amount being released at the end of the 10 years.

An increase of $2,000 in the annual cash inflows from this project.

Reference no: EM13775563

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