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You have just assessed a project, involving an immediate cash outflow followed by a series of cash inflows over the next seven years, by calculating

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You have just assessed a project, involving an immediate cash outflow followed by a series of cash inflows over the next seven years, by calculating the NPV. You have now discovered that you have underestimated the discount rate. Correcting for the underestimation will have the following effects, relative your original NPV deductions: Select one: a. Reduce O b. No change O c. Increase

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