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

Question 24

Multiple Choice

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


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

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