How much will npv change the equipment is 5-year macrs


Suppose you just finished analyzing a 5-year capital investment, but you get a call from the CFO saying the initial cost of the equipment will be $1 million more than expected. How much will NPV change? The equipment is 5-year MACRS property. Assume a 35% marginal tax rate, 10% required return, and no change in salvage value.

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Financial Management: How much will npv change the equipment is 5-year macrs
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