Question: Suppose a company is evaluating a project to launch a new product. It is estimated that if we launch the new product: i) Sales of
Suppose a company is evaluating a project to launch a new product. It is estimated that if we launch the new product:
i) Sales of existing products decrease
ii) The company's interest costs will increase
iii) The stock level will increase at the beginning of the project and then decrease towards the end of the project
Which of the above statements should the company consider when calculating the NPV of the project? Question 12 options:
i only
i,ii and iii
i and iii
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