[Answer] 2. Which of the following will have the largest dollar effect on the net present value of a 10 year investment project? A. a decrease of $20 000 in the initial investment required with no effect on the expected salvage value in 10 years.B. an increase of $20 000 in the expected salvage value in 10 years with no effect on the initial investment.C. 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.D. an increase of $2 000 in the annual cash inflows from this project.

Answer: A

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2. Which of the following will have the largest dollar effect on the net present value of a 10 year investment project? A. a decrease of $20 000 in the initial investment required with no effect on the expected salvage value in 10 years.B. an increase of $20 000 in the expected salvage value in 10 years with no effect on the initial investment.C. 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.D. an increase of $2 000 in the annual cash inflows from this project. 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 . a decrease of $20 000 in the initial investment required with no effect on the expected salvage value in 10 years . If taxes are ignored all of the following items are included in a discounted cash … The initial estimates were that the project would cost $246 830 would have a useful life of 9 years zero salvage value and would result in net annual cash flows of $45...

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