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(Lecture 6 - Capital Budgeting) Assume the discount rate for ABC Corporation's projects is positive. If one of its projects has cash flows related to
(Lecture 6 - Capital Budgeting) Assume the discount rate for ABC Corporation's projects is positive. If one of its projects has cash flows related to the changes in net working capital as follows: Year 0 = -20,000 (cash outflow), Year 1 = 0, Year 2 = 0, Year 3 = +20,000 (cash inflow) Given the above information, if NWC requirements doubled (i.e., each year's NWC were twice as much), what would be the impact on the project's NPV? O A. Increase O B. No impact O C. Decrease
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