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Eric is evaluating a potential investment in a new product line for his company. The new During his analysis, Eric considers the following costs: Spring
Eric is evaluating a potential investment in a new product line for his company. The new During his analysis, Eric considers the following costs: Spring 2024 FIN3610 Final Exam. Version A 1. $50,000 spent last year on market research for the new product. 2. The potential profits from an alternative project that will not be pursued if this new product line is launched. 3. Additional costs of $200,000 required to launch the new product line, plus an estimated $30,000 annually in operational costs. 4. The estimated reduced sales of one of the company's existing products. 5. Evaluating the new product line as if it were the only strategic initiative of the company. Given this information, what are costs/factors listed above that Eric should consider while making his investment decision? A. 1,2,3,5 B. 2,3,4,5 C. 1,2,3,4 D. 1,2,3,4,5
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