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A project with conventional cash flows has been determined to be profitable and should be funded. The company has the option to increase the size
A project with conventional cash flows has been determined to be profitable and should be funded. The company has the option to increase the size of the project by 20 percent. If it does so, the initial outlay and after-tax cash inflows will rise by 20 percent. Assuming the company opts to increase the project's size, the project's net present valuemost likelywill:
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