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4 pt Question 22 Prince Spaghetti Company is undertaking a capital budgeting analysis for a new line of pasta. The firm realizes that if they

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4 pt Question 22 Prince Spaghetti Company is undertaking a capital budgeting analysis for a new line of pasta. The firm realizes that if they come out with a new product it would affect the sales of existing products. What is the best course of action for Prince Spaghetti in this analysis? Treat the reduction of sales as a sunk cost. Account for the reduction of sales in the projection of cash flows for the new product. Include the allocated costs of the new pasta in the sales of the pre-existing pasta Ignore the fact that sales of other products will be affected

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