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In the Context of the Capital Budgeting Analysis of an MNC

Question 50

Multiple Choice

In the context of the capital budgeting analysis of an MNC that has strong foreign competitors, "lost sales" refers to


A) the cannibalization of existing projects by new projects.
B) the entire sales revenue of a new foreign manufacturing facility representing the incremental sales revenue of the new project.
C) both a and b
D) none of the above

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