What would be the impact on the net present value

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Problem 1: The trade-in value of an old machine was $20,000. If instead, the trade-in value of the old machine was $0, what would be the impact on the net present value of the proposal to purchase a new machine?

a. It would increase the net present value of the proposal.

b. It would decrease the net present value of the proposal.

c. It would not affect the net present value of the proposal.

d. Potentially it could increase or decrease the net present value of the proposal.

Reference no: EM132752147

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