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Your initial calculation of the NPV of a five-year project is $100. However, the CEO points out that you have forgotten to incorporate information about

Your initial calculation of the NPV of a five-year project is $100. However,

the CEO points out that you have forgotten to incorporate information about

additional credit lines that you have agreed to extend to customers.

Specifically, if the project is taken, the level of your Accounts Receivable

will increase today by $100. Assuming the relevant OCC is 8 percent, what

is the corrected NPV when this is taken into account?

A) $0

B)$68.058

C)131.942

D)200.00

E) stays at $100 because no correction is needed

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