After estimating a project’s NPV, the analyst is advised that the fixed capital outlay will be revised upward by $20,000. The fixed capital outlay is depreciated straight-line over an eight-year life. The tax rate is 40 percent and the required rate of return is 12 percent. No changes in cash operating revenues, cash operating expenses, or salvage value are expected. The change on the project's NPV is a/an______(increase or decrease) of $________?
Dear Student Please find... View the full answer