A New, More Efficient Machine Will Last 4 Years and Allow

question 27

Multiple Choice

A new, more efficient machine will last 4 years and allow inventory levels to decrease by $100,000 over its life. At a cost of capital of 13%, how does the net working capital change affect the project's NPV?

• A) NPV increases by $38,668.13.
• B) NPV increases by $61,330.09.
• C) NPV will not change.
• D)NPV increases by $100,000.

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Definitions:

Negative Symptoms

Features often associated with certain conditions or disorders, indicating the absence or diminution of normal behaviors or functions, such as lack of emotional expression in schizophrenia.

Schizophrenia

A chronic and severe mental disorder that affects how a person thinks, feels, and behaves, often leading to some degree of dysfunction.

Chronic

Describing a condition or disease persisting for a long time or constantly recurring, often implying a long-term health issue.

Schizophrenia

A chronic mental health disorder marked by disturbances in thought, behavior, and emotions, including delusions and hallucinations.