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Marzella Corp

Question 4

Multiple Choice

Marzella Corp. is analyzing a project that involves expanding the firm into a new product line. The project includes the construction of a new manufacturing facility and also creating a new distribution system. The project's financial projections will tend to have which one of the following characteristics if the person compiling those projections suffers from overoptimism?


A) over estimated construction costs
B) over estimated expenses
C) over estimated net present values
D) under estimated profits
E) under estimated sales estimates

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