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Question requires the calculation of NPV to determine whether to accept the project. The project requires adding digital books to product line as this would

Question requires the calculation of NPV to determine whether to accept the project. The project requires adding digital books to product line as this would be a more profitable source of revenue compared to print books. The company assumes a decrease in sales from the bookstores as customers move to electronic books. This decrease will amount to $500K per year.

Do I consider the decrease in $500K per year in my cashflows when I prepare the cash flow?

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