Does inflation in gasoline prices increase or decrease npv

Reference no: EM13286081

Assume you're doing a capital budgeting exercise, where you are considering replacing your old "gas-guzzling" car (which gets 10 mpg) with a Nissan Leaf (all electric vehicle). Does inflation in gasoline prices increase or decrease the NPV of replacing the guzzler with the Leaf? Explain your reasoning!

Reference no: EM13286081

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