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Project C requires a net investment of $1,000,000 and has a payback period of 5.6 years. You analyze Project C and decide that Year 1
Project C requires a net investment of $1,000,000 and has a payback period of 5.6 years. You analyze Project C and decide that Year 1 free cash flow is $100,000 too low, and Year 3 free cash flow is $100,000 too high. After making the necessary adjustments ________. Answer A)the NPV of Project C will decrease B)the payback period for Project C will be shorter than 5.6 years C)the IRR of Project C will increase D0the payback period for Project C will be longer than 5.6 years
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