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Whenever a Project Has a Negative Impact on an Existing

Question 55

Multiple Choice

Whenever a project has a negative impact on an existing project's cash flows, then that effect should:


A) be ignored.
B) be ignored if the project is evaluated using the correct cost of capital.
C) be included as a negative revenue amount on the new project's cash flow analysis.
D) be included if the impact is limited to noncash expenditures.

Correct Answer:

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