What is the change in the NPV of a one-year project if fixed costs are increased from
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Question:
What is the change in the NPV of a one-year project if fixed costs are increased from $400 to $600, assuming the firm is profitable, has a 35% tax rate, and a 12% cost of capital?
a. $20,000
b. $17,857
c. $13,000
d. $11,607
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