Think about changes that happen in the following project once it has been accepted and moving forward. Describe what you expect to happen to the project's expected NPV, and WHY that is your expectation:

 

Project: 

Two years ago, when the original cash flow projections were prepared for one of your company's projects it was assumed that at the project's end (another 6 years from now), the heavy equipment would be sold for $4mm to a competitor. Due to much heavier wear on the equipment, it is now assumed that the equipment will be worth less than $1mm at the project's end.