Consider Matthew has a start-up company. It only has one potential project. The project has a positive NPV if the firm is financed entirely by equity. If the project can be financed by a mixture of debt and equity, then how does the NPV of the project change?

Group of answer choices

a.Using debt will decrease the NPV.

b.The project may now become unacceptable.

c.Using debt will increase the NPV.

d.There will be no change in the project's NPV.