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What happens to the NPV of a one-year project if fixed costs are increased from $500 to $600, the firm is profitable, has a 30%
What happens to the NPV of a one-year project if fixed costs are increased from $500 to $600, the firm is profitable, has a 30% tax rate and employs a 15% cost of capital?
A. NPV decreases by $60.87. B. NPV decreases by $70.00. C. NPV decreases by $87.96. D. NPV decreases by $100.00.
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