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Your boss is initiating a foreign investment (establishing a foreign subsidy) and investigating the effect of different factors on the net present value (NPV) of

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Your boss is initiating a foreign investment (establishing a foreign subsidy) and investigating the effect of different factors on the net present value (NPV) of the project. She is specifically interested in the impact of the initial investment and the required rate of return on the NPV. Knowing that you have a good background in international finance, she asked you to fill in the following sentence for her.' The NPV of an international project is _ related to the project's salvage value and related to the size of the initial investment positively; negatively negatively; positively positively; positively negatively; negatively

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