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A six year project requires an increase in inventories of 100,000$ at the start of the project that will no longer be needed at the

A six year project requires an increase in inventories of 100,000$ at the start of the project  that will no longer be needed at the end of the project. If the opportunity cost of capital is 5%.


What effect will this have on the NPV of the project ? 


Will it decrease or increase and by how much ?

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