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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