(Answered) Buret corporation is contemplating a plant expansion

Finance

Buret Corporation is contemplating a plant expansion capital budgeting decision. The plant expansion will require an $80,000 increase in working capital. This amount will be released at the end of the useful life of this project. Which of the following will increase the present value of the cash flows associated with the increase and release of the $80,000 of working capital?

A) an increase in the cost of capital.

B) an increase in the tax rate.

C) an increase in the useful life of the project.

D) none of the above.

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