Question
Please show steps How does net working capital affect the NPV of a six-year project if working capital is expected to increase by $25,000 at
Please show steps
How does net working capital affect the NPV of a six-year project if working capital is expected to increase by $25,000 at the beginning of the project and recaptured at the end (the firm has a 15% cost of capital)?
NPV will decrease by $25,000
NPV will decrease by $14191
NPV will decrease by $12,571
NPV will increase by $12,571
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Foundations of Financial Management
Authors: Stanley Block, Geoffrey Hirt, Bartley Danielsen
16th edition
125927716X, 978-1259687969, 1259687961, 978-1259277160
