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In simplest terms - 3 ways:

- Reduce costs - whether start up or maintenance costs, reducing them will improve the NPV of the venture

- Chose a project with higher revenues, or one with cash inflow sooner rather than later

- Project with shorter time span - time value will deteriorate less the cash inflow

Those are very basic guidelines though, you can have a really long lasting project with pay offs towards the end of the whole project and high upstart costs which may have higher NPV compared to a shorter one, with better cost-revenue time allocation.

To determine, always try to calculate the npv with the formula...

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15y ago

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