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2 a) Explain the following terms: incremental cost, sunk cost, opportunity cost, externality, and cannibalization b) Decide whether each of the above costs is relevant
2 a) Explain the following terms: incremental cost, sunk cost, opportunity cost, externality, and cannibalization
b) Decide whether each of the above costs is relevant when making a decision about a new capital investment
c) indicate whether each of the above (5 of them) should be included in the NPV calculation.
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