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What Is the Change in the NPV of a One-Year

Question 41

Multiple Choice

What is the change in the NPV of a one-year project if fixed costs are increased from $400 to $600, the firm is profitable, has a 35% tax rate, and employs a 12% cost of capital?


A) -$200.00
B) -$178.57
C) -$130.00
D) -$116.07

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