The project would decrease sales of anther product line.

Question $14$

Which of the following statements is CORRECT?

An externality is a situation where a project would have an adverse effect on some ofter operations. If the project would have a favorable effect on other operations, then this is

Identifying an externality can never lead to an increase in the calculated NPW$.$

A good example of a sunk cost is a situation where Home Depot opers a new sore: ing one of the firm's existing stores.

A sunk cost is a cost that was incurred and expensed in the past and cannot be recond forward with the project.

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