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After estimating a project's NPV, the analyst is advised that the fixed capital outlay will be revised upward by $100800. The fixed capital outlay is
After estimating a project's NPV, the analyst is advised that the fixed capital outlay will be revised upward by $100800. The fixed capital outlay is depreciated straight-line over a 8-year life. The tax rate is 40 percent, and the required rate of return is 12 percent. No changes in cash operating revenues, cash operating expenses, or salvage value are expected. What is the effect on the project NPV? O No change. O $75763 decrease. O $63245 decrease. O $100800 decrease
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