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A new, more efficient machine will last 4 years and allow inventory levels to decrease by $100,000 during its life. At a cost of capital

A new, more efficient machine will last 4 years and allow inventory levels to decrease by $100,000 during its life. At a cost of capital of 13%, how does the net working capital change affect the project's NPV?

a. NPV will increase

b. NPV will decrease

c. NPV will not be affected

d. NPV could either increase or decrease

e. None of the above

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