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The opportunity cost of borrowing currently is at 8%. Halcyon could finance building the ship by borrowing the entire investment at an interest rate less
The opportunity cost of borrowing currently is at 8%. Halcyon could finance building the ship by borrowing the entire investment at an interest rate less than 8%. How does this borrowing opportunity affect your calculation of NPV?
A) NPV will go down
B) Does not change
C)NPV will go up
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