A New, More Efficient Machine Will Last Four Years and Allow

question 29

Multiple Choice

A new, more efficient machine will last four years and allow inventory levels to decrease by $100,000 during its life.At a cost of capital of 13 percent, how does the net working capital change affect the project's NPV?

• A)NPV increases by $38,668
• B)NPV increases by $61,330
• C)NPV increases by $100,000
• D)NPV increases by $138,668

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Definitions:

ECG Stress Test

A diagnostic test examining how the heart works under stress, typically involving exercise or medication.

Ventricular Action

The activity or contractions of the ventricles, the two lower chambers of the heart, responsible for pumping blood to the body and lungs.

T Wave

A component of the heart's electrical pattern recorded during an EKG, representing the repolarization of the ventricles.

ECG Paper

Specialized graph paper used in electrocardiography to record electrical activity of the heart.