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Suppose we have a project that can be scaled up ordown, and we would like to make it larger. At the currentsize, the project has
Suppose we have a project that can be scaled up ordown, and we would like to make it larger. At the currentsize, the project has an NPV of$1,000 and an IRR of10%. If we scale allCFs, positive andnegative, up by50%, how does that affect the NPV andIRR?
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