What should be done when the price of one good or service changes differently from the average price of other goods and services associated with a project?
A)Incorporate the price change directly into the cash flows of the project.
B)Incorporate the price change into the real MARR of the project.
C)Assume that the price change is the same for all goods and services of the project.
D)Use two different MARRs for different goods and services of the project.
E)Find the average price change for all goods and services of the project.

Question

Quizplus · Accepted Answer

Incorporating the specific price change directly into the cash flows of the project allows for a more accurate and realistic financial analysis, reflecting the actual economic impact of the price change on the project's viability and profitability.

What Should Be Done When the Price of One Good