A capital budgeting project has inflows of 300 for 5 years, and
an initial investment of 1,200. However, management recently
decided to reduce the size of the capital budgeting project. The
initial investment will decrease by 180 to 1,020 and the cash
inflows will decrease by 40 to 260. As a result, in comparison to
the original NPV profile, the horizontal intercept of the NPV
profile for this reduced capital budgeting project shifts:
Multiple Choice
right and the vertical intercept...