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

question 106

Multiple Choice

A new,more efficient machine will last 4 years and allow inventory levels to decrease by $100,000 during 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.
• B) NPV increases by $61,330.
• C) NPV increases by $100,000.
• D) NPV increases by $138,668.

---

Definitions:

Noncyclic Pathway

A linear process in photosynthesis where electrons move from water to NADPH without cycling back to the original state.

Cyclic Pathway

A series of biochemical reactions that occur in a sequence where the last step regenerates a reactant for the first step, forming a cycle, such as in the citric acid cycle.

Fossil Fuels

Natural fuels formed from the remains of ancient organisms, such as coal, oil, and natural gas, used as a source of energy.

Photosynthetic Organisms

Organisms that convert light energy into chemical energy through photosynthesis, using water and carbon dioxide to produce oxygen and glucose.