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Consider the following scenario: Galaxy Corp. is considering opening a new division to make iToys that it expects to sell at a price of $12,450

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Consider the following scenario: Galaxy Corp. is considering opening a new division to make iToys that it expects to sell at a price of $12,450 each in the first year of the project. The company expects the cost of producing each iToy to be $6,200 in the first year; however, it expects the selling price and cost per Toy to increase by 1% each year. Based on this information, select the correct answer: Selling price in year 4: Cost per unit in year 4: If a company does not take inflation into account when analyzing a project, the expected net present value (NPV) of the project will typically be than the true NPV of the project

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