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What is the impact of each of the following on the NPV of a project increase/ decrease)? Assuming everything else stay equal. Think of a

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What is the impact of each of the following on the NPV of a project increase/ decrease)? Assuming everything else stay equal. Think of a numerical example if needed. For example: Imagine a project that costs $200,000 but generates $80,000 each year for 5 years at 10% 1. A decrease in the discount rate (cost of capital) Decrease Increase (Cost of capital is 8% instead) [Increase] 2. A decrease in the amount of future cash flows Decrease / Increase (Generate $75,000 each year instead) [Decrease] 3. An increase in the initial cost of the project Decrease! Increase (Cost of $250,000 instead) (Decrease] 4. An increase in the number of future cash flows Decrease! Increase (Generate $80,000 each year for 6 years instead) [Increase] 5. A delay period before getting future cash flows Decrease Increase (Incoming cash flows in vear 2-6 instead) [Decrease] Decrease Increase [Decrease] Decrease Increase [Decrease] 5. A delay period before getting future cash flows (Incoming cash flows in year 2-6 instead) 6. A cancelation of cash flow in year 3 due to bad economy (Cash flows $80,000, $80,000. SO, S80,000, $80,000 instead) 7. An additional expansion/ maintenance cost in year 3 (Costing $20,000 in year 3 for maintenance) 8. A termination salvage value at the end (selling assets) (At the end of year 5. getting $50,000 for asset liquidation) Decrease Increase [Decrease] Decrease / Increase [Increase]

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