A six year project requires an increase in inventories of 100,000$ at the start of the project

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A six year project requires an increase in inventories of 100,000$ at the start of the project that will no longer be needed at the end of the project. If the opportunity cost of capital is 5%.

What effect will this have on the NPV of the project ?

Will it decrease or increase and by how much ?

Related Book For answer-question

Financial Reporting Financial Statement Analysis and Valuation a strategic perspective

ISBN: 978-1337614689

9th edition

Authors: James M. Wahlen, Stephen P. Baginski, Mark Bradshaw

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Posted Date: Jun 15, 2023 03:30 AM

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A six year project requires an increase in inventories of 100,000$ at the start of the project

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To determine the effect of the increase in inventories on the net present value NPV of the project w... View the full answer

Financial Reporting Financial Statement Analysis and Valuation a strategic perspective

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