Multiple Choice
How does net working capital affect the NPV of a five-year project if working capital is expected to increase by $25,000 and the firm has a 15% cost of capital?
A) NPV will increase by $9,322
B) NPV will increase by $12,571
C) NPV will decrease by $25,000
D) NPV will decrease by $12,571
Correct Answer:
Verified
Correct Answer:
Verified
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