Repeat Business is considering launching a new line of repeating software. The project has the following parameters: • Product life cycle of 9 years. • An increase in net working capital of $5.0 million in year 0, which will be recovered at the end of year 9. • Repeat Business' marginal tax rate is 40%. • Repeat Business' cost of capital is 9% effective annual What is the impact on NPV if the net working capital increase is $7.5 million (instead of $5.0 million) in year 0? The working capital will still be recovered at the end of year 9. О A) It will increase the NPV of the project B) It will not affect the NPV of the project OC) It is impossible to determine the effect on the NPV of the project. D) It will decrease the NPV of the project

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