Comment on the effects that the given would have

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Reference no: EM131341270

Net Present Value Impact:-

Comment on the effects that the following would have on the net present value (i.e., increase, decrease, or no effect). Provide a short explanation of your answer. Each item is independent of every other item.

A. The discount rate is lowered.

B. Ingredient costs increase and price increases cannot be passed on to customers.

C. The new process would require additional working capital investment.

D. In a machine replacement analysis, it is further learned that a complete overhaul of the old machine, which is under consideration for replacement, will be needed in year 4.

E. The sales price decreases with no increase in the number of units sold or change in the cost structure.

Reference no: EM131341270

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