What is the effect on the project npv

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Reference no: EM131561458

After estimating a project’s NPV, the analyst is advised that the fixed capital outlay will be revised upward by $100,000. 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 10 percent. No changes in cash operating revenues, cash operating expenses, or salvage value are expected. What is the effect on the project NPV?

$73,325 decrease

No change

$59,988 decrease

$100,000 decrease

Reference no: EM131561458

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