Question: You are evaluating a project that involves purchase of new equipment (they will not be sold in the shut-down phase). You just reviewed your junior

You are evaluating a project that involves purchase of new equipment (they will not be sold in the shut-down phase). You just reviewed your junior analyst's NPV analysis which omitted the depreciation expense on equipment purchased for the project. The NPV of the project was $0 according to this analysis. If this analysis had been done correctly, the NPV would have been: A) Negative B) $0 (i.e. no change) C) Positive

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