QUESTION 7 Fly High Co. is expanding and expects operating cash flows of $64,000 a year for seven years as a result. This expansion requires 540,000 in new foxed assets. These assets will be worthless at the end of the project. In addition the project requires 53,000 of net working capital throughout the life of the project. What is the net present value of this expansion project at a required rate of return of 12.5 percent? O A. $199.890.9 OB. $245,822.6 OC. $236,938.7 OD. $268,439.6 O E $200,343.6 QUESTIONS [Extra credit] If a project's forecast future CFs remain the same, and the required initial outlay increases, the project's NPV will and its IRR will A. Increase, increase OB. decrease, decrease OC. Increase, decrease OD. Increase, no change E. decrease increase