Use the following statements to answer this question:
I.When we are dealing with cannibalization of a project, we should ignore the old product.
II.Increases in incremental cash flows can be gained from decreases in expenses.

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Quizplus · Accepted Answer

I is incorrect because when dealing with cannibalization of a project, it's important to consider the impact on the old product, as sales of the new product may reduce sales of the old product. II is correct because increases in incremental cash flows can indeed be gained from decreases in expenses, as lower expenses increase net income.

Use the Following Statements to Answer This Question