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What happens to the NPV of a one year project if fixed costs are increased from $400 to $600, the firm is profitable, has a 15% tax rate, and employs 12% cost of capital?

a) npv decreses by $200
b) npv decreases by $113.04
c) npv decreases by $173.91
d) npv decreases by $130.00

 

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  • Reference No.:- M9881323

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