You have been analyzing a project. It would require an investment of $$10$ million and produce positive cashflows for $10$ vears. Based upon the characteristics of this project, you used a cost of capital of r$=12\%.$ Applying the

NPV Criteria, you decided to accept the project. When presenting the results to your manager, she informs you that you should have used $8\%$ as the cost of capital. Does this affect your investment decision?

A$.$ Yes. decreasing the cost of capital increases the NDV

$$ B$.$ Yes, decreasing the cost of capital decreases the NPV

OC$.$

No$.$ decreasino the cost or capital increases the NeV

$$ D$.$ No$,$ decreasing the cost of capital decreases the NPV