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.

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Definitions:

Leading Cause

The most significant reason or factor contributing to a specific outcome, often used in the context of health to describe the primary source of morbidity or mortality.

Death

The termination of all life-sustaining biological activities in an organism.

United States

A country located in North America consisting of 50 states and a federal district, known for its significant influence in global affairs, economy, and culture.

Mental Disorder

A broad category of conditions that affect an individual's thinking, feeling, mood, or behavior, often significantly impacting day-to-day functioning.