-If the Cost of Goods decreases and all other factors remain the same then: ...
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-If the Cost of Goods decreases and all other factors remain the same then:
NPV will remain the same
Not enough information
NPV will increase (Explain why this is the correct answer)
NPV will decrease
-Milson Company is considering the purchase of ABC Company at a price of $190,000. If Milson makes the acquisition, its after tax cash flows will increase by $30,000 per year and remain at this new level forever. If the company MARR is 15%, should Milson buy ABC Company?
Yes, because the NPV = $30,000
Yes, because the NPV = $200,000
Yes, because the NPV = $10,000 (explain why this is the correct answer)
No, because NPV
There is not enough information given to answer this question
-Consider a project with an initial outflow at time 0 and positive cash flows in all subsequent years. As the discount rate (MARR) is increased then
IRR remains constant while the NPV decreases (explain why this is the correct answer).
IRR increases while the NPV remains constant
IRR decrease while the NPV decreases
IRR remains constant while the NPV increases
IRR decreases while the NPV remains constant
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