What happens to the NPV of a one-year project if fixed costs are increased from $400 to $600, the firm is profitable, has a 15 percent tax rate and employs a 12 percent cost of capital?

A) NPV decreases by $200.00
B) NPV decreases by $173.91
C) NPV decreases by $151.79
D) NPV decreases by $130.00

Answer: C) NPV decreases by $151.79

Business

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a. true b. false

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One of the most exciting projects in the Central American region in 2014 was:

A) the enlargement of the Panama Canal. B) Central America's effort to revive its common market. C) the five original members' decision to reestablish the CACM. D) the establishment of Guatemala as region's headquarter. E) the Free Trade Agreement with the United States.

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