Question: After estimating a projects NPV, the analyst is advised that the fixed capital outlay will be revised upward by $100,000. The fixed capital outlay is

After estimating a projects 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% and the required rate of return is 10%. No changes in
cash operating revenues, cash operating expenses, or salvage value are expected. What is the

effect on the project NPV?

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