In evaluating a project, it is necessary to consider its effect upon the sales of the firm's existing products.

Question

Quizplus · Accepted Answer

The impact of the project on the sales of existing products is a critical aspect to consider when evaluating a project's feasibility and potential profitability. If the project could cannibalize sales of existing products, it may not be worth pursuing. Alternatively, a project that could drive sales and augment the firm's existing product line would be a better investment.

In Evaluating a Project, It Is Necessary to Consider Its