A proposed project has a positive NPV if it is financed entirely by equity.If the project can sensibly be financed partly by debt and the firm pays tax,will the project remain acceptable?
A) Yes, using debt will increase the NPV.
B) No, using debt will decrease the NPV.
C) The project may now become unacceptable.
D) There will be no change in the project's NPV.
Correct Answer:
Verified
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