Question: Sample Test Problem 11.03 After examining the NPV analysis for a potential project that would increase the firm's output by 5 percent, an analyst's manager
Sample Test Problem 11.03 After examining the NPV analysis for a potential project that would increase the firm's output by 5 percent, an analyst's manager tells the analyst to Increase the initial fixed capital outlay in the analysis by $486,000. The initial fiked capital outlay would be fully depreciated on a straight-line basis required rate of return is 10 percent, what is the efect of the adjustment on the project NPV? (Do not round discount factor. Round intermediate calculations and final answer to the nearest whole dollar, e.g. 5,275.) 2-year life, regard ess of whether it is increased. If the firm's average tax rate is 28 percent, its marginal tax rate is 35 percent, and the Project NPV will be by Sample Test Problem 11.03 After examining the NPV analysis for a potential project that would increase the firm's output by 5 percent, an analyst's manager tells the analyst to Increase the initial fixed capital outlay in the analysis by $486,000. The initial fiked capital outlay would be fully depreciated on a straight-line basis required rate of return is 10 percent, what is the efect of the adjustment on the project NPV? (Do not round discount factor. Round intermediate calculations and final answer to the nearest whole dollar, e.g. 5,275.) 2-year life, regard ess of whether it is increased. If the firm's average tax rate is 28 percent, its marginal tax rate is 35 percent, and the Project NPV will be by
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