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A firm projects a small increase in sales, but still requires a significant increase in plant and equipment. Which of the following is a reason

A firm projects a small increase in sales, but still requires a significant increase in plant and equipment. Which of the following is a reason for such a large financial commitment?

A Decrease in economies of scale
B Increase in fixed operating costs
C Decrease in financing feedbacks
D Increase in lumpy assets
E Decrease in spontaneously generated funds

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