Respond to each question with an answer of a sentence or two: a) Why might recognizing the
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Question:
Respond to each question with an answer of a sentence or two:
a) Why might recognizing the existence of a real option raise, but not lower, a project's NPV as found in the traditional manner?
b) What determines whether a preliminary expenditure is a sunk cost or a project cost for capital investment purposes?
c) Why should funds raised to satisfy the additional funds needed be considered long term funds?
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