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Q1. Suppose the firm increases the debt used from $100,000 to $1,500,000. Also assume that the higher debt reduces the firms credit rating from BBB+

Q1. Suppose the firm increases the debt used from $100,000 to $1,500,000. Also assume that the higher debt reduces the firms credit rating from BBB+ to BBB. What do you think will happen to the NPV of the project? Explain your answer.

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