If the cost to produce something increases, what happens to NPV ? I am a little foggy on this. Thank you !
Example: Widget A cost to produce went up $100 since last year. The NPV for the Widget A project went up or went down ?
I would say decrease because net cash flow decreases.
To be slightly clearer, net cash _ in _flow decreases.
NPV decreases.
OK thanks everyone ! I appreciate it
My pleasure.