Question: After estimating a project's NPV, the analyst is advised that the fixed capital outlay will be revised upward by $98400. The fixed capital outlay is

After estimating a project's NPV, the analyst is advised that the fixed capital outlay will be revised upward by $98400. The fixed capital outlay is depreciated straight-line over an 8-year life. The tax rate is 25 percent, and the required rate of return is 9 percent. No changes in cash operating revenues, cash operating expenses, or salvage value are expected. What is the effect on the project NPV?

A) No change.

B) $71169 decrease.

C) $81380 decrease.

D) $57553 decrease.

After estimating a project's NPV, the analyst is advised that the fixed capital outlay will be revised upward by $98400. The fixed capital outlay is depreciated straight-line over an 8 -year life. The tax rate is 25 percent, and the required rate of return is 9 percent. No changes in cash operating revenues, cash operating expenses, or salvage value are expected. What is the effect on the project NPV? No change. $71169 decrease. $81380 decrease. $57553 decrease

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