Chapter 7: Selecting and implementing Risk Management Homework . Due in 5 days $100,000 Installation costs $600,000 Loss reduction $ 80,000 Premium savings 63.000 Maintenance -3,000 Before-tax-cash flow $140,000 Depreciation 40.000 Taxable savings Taxes (0.4 x $100,000) -40.000 Income after taxes $ 60,000 Depreciation 40,000 After-tax cash flow $100,000 Present value of the cash flow = $100,000 x 7.6060 = $760,600 Net present value (NPV) of the investment = $760.600 - $600.000 = $160.600 Chapter 7: Selecting and implementing Risk Management T... Homework . Due in 5 days 7/11 answered Key Concepts 7.5 Homework. Unanswered In the calculation in Table 7-1, if everything else remained the same how would the NPV change if installation costs increased and the premium savings were decreased? the NPV would be higher B the NPV would be lower C the NPV would be unchanged Unanswered I attempt left Fullscre