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A finance manager is evaluating the following project Year Free Cash flows P.V Factor @ 20% Present value 0 (1000) 1.0 (1000) 1 250 0.833

A finance manager is evaluating the following project Year Free Cash flows P.V Factor @ 20% Present value 0 (1000) 1.0 (1000) 1 250 0.833 208.33 2 250 0.694 173.61 3 250 0.579 144.68 4 250 0.482 120.56 5 250 0.401 100.47 5 1250 0.401 502.35 Considering the additivity principle, which of the following statement is not correct Select one: The marginal utility of the project is decreasing The project has no impact on the marginal utility The marginal utility of the project is increasing The marginal utility of the project is constant

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