After estimating a project’s NPV, the analyst is advised that the fixed capital outlay will be revised upward by $100,000. The fixed capital outlay is depreciated straight-line over an eight-year life. The tax rate is 40% and the required rate of return is 10%. No changes in cash operating revenues, cash operating expenses, or salvage value are expected. What is the effect on the project NPV?
Please give me step by step on how to do this.