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Unformatted text preview: FC The change in fixed costs relative to a given option is the difference between the level of fixed costs that would result from choosing the option i less the level of fixed costs that would result from not choosing the option. ∆ P i ∆ R i RC i ∆ R i . VC i X i ∆ FC i Capital budgeting NPV bt Investment . PVAF , n i ( ) ∆ ANCF . PVF , n i NCF n NPV at Investment at . PVAF , n i ∆ ANCF at . PVF , n i NCF , n at NCF at . NCF bt ( ) 1 TR . EXP Noncash ( ) TR . REV Noncash ( ) TR Gain( ) loss Taxable Proceeds NBV Proceeds ( ) Cost AD ν...
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