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Question 11 1 pts A divisional manager submitted a project proposal to the chief financial officer, complete with a calculated NPV (net present value) for
Question 11 1 pts A divisional manager submitted a project proposal to the chief financial officer, complete with a calculated NPV (net present value) for the project. The chief financial officer studied the proposal and pointed out that the divisional manager had failed to account for two items: 1. A one-time increase in net working capital of $32,000 that will be required over the life of the six-year project. The full value of net working capital will be recovered at the end of the project. 2. Equipment used in the project will no longer be needed after year four. It is expected that it can be sold at the end of year four for $18,000. How will the project's NPV change after taking into account the missing items? Assume a discount rate of 9%. (Round answers to the nearest dollar.) O The NPV will not be affected. O The NPV will decrease by $14,000. O The NPV will decrease by $2,187. O None of the options are correct. O The NPV will decrease by $168
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