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The Net Present Value (NPV) Model of a Capital Budgeting

Question 122

Multiple Choice

The net present value (NPV) model of a capital budgeting project is not affected by the


A) Amount of depreciation expense allowed on the project for income tax purposes.
B) Method of funding the cost of the project.
C) Amount of net working capital needed for operations during the life of the project.
D) Estimated salvage value of the project at the end of the project's useful life.
E) Initial cost of the project.

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