d$)$ Think about changes in a project once it has been accepted and moving forward. Here are $3$ potential scenarios. For each, assume everything else stays the same and describe what you expect to happen to a project's expected NPV$,$ and WHY that is your expectation. Recall the $3$ important factors for value: riskiness of cash flows $($think required rate of return$),$ timing of cash flows, amount of cash flows.

LOOK AT EACH SITUATION INDIVIDUALLY AND ASSUME THAT THERE ARE NO OTHER CHANGES FOR THE FIRM.

i$)$ Let's say we have a project with anticipated cash flows for $10$ years, at which point the project is complete. When the initial analysis of the project was done, it was anticipated that the project's major equipment could be sold to a competitor. The funds from that sale were included in the final year's cash flow. Now that it is a few years into the project, it is becoming obvious that the equipment will be worn out to the point where there is no value in selling it at the end of the project. In other words, any salvage value has been eliminated.

ii$)$ Due to changes in US trade policy, tariffs for imported goods, primarily those from China, have increased. A firm$$s production process relies on $50\%$ of its source materials from China.

iii$)$ Last year, when the project$$s revenues, expenses, and cash flows were analyzed, it was expected that the new factory$$s workforce would be fully unionized, requiring wages $10\%$ higher than those at the company$$s out$-$of$-$state facilities. The union vote was soundly rejected last week, which means the new factory$$s workforce will be non$-$union with a wage scale similar to other company facilities.