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A project requires an increase in net working capital of $150,000 at time that will be recovered at the end of its 10 year life.

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A project requires an increase in net working capital of $150,000 at time that will be recovered at the end of its 10 year life. If the opportunity cost of capital is 8%. what is the effect of NWC on the NPV of the project? NPV decreases by $150,000 NPV decreases by $80,521 NPV increases by $80,521 NPV increases by $150,000 NPV is not affected

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