1.

The following would be consistent with canibalization:

		a) all of the above
		a) initial costs associated with a project.
		a) a process in which new projects negatively impact revenue to current projects.
		a) Costs that are already made and therefore not relevant.

2. Assume the following cash flows for a convenience store project you are considering, the initial outflow is $656,527 followed by ten operating cash flows $123,550 in years 1 to 10. You will also receive a terminal cash flow of $438,500 also at year 10.

Compute the NPV of the project given an interest rate of 12%.