Think about changes in a project once it has been accepted and moving forward. Here are $2$ 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. $(2$ pts for each of the following$).$ Recall the $3$ important factors for value: riskiness of cash flows $($think required rate of return$),$ timing of cash flows, and amount of cash flows.b$)$ Newly available technology has reduced operating costs for a project in year $2$ of a project that still has $8$ years of viable life. No other changes in the project have occurred.

c$)$ Two years ago, when the original cash flow projections were prepared for one of your company's projects it was assumed that at the project's end $($another $6$ years from now$),$ the heavy equipment would be sold for $$4mm$ to a competitor. Due to much heavier wear on the equipment, it is now assumed that the equipment will be worth less than $$1mm$ at the project's end.