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Erosion costs are defined as the cash flows of a new project that: Question 15 options: Are related to the taxes incurred because of the
Erosion costs are defined as the cash flows of a new project that:
Question 15 options:
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Are related to the taxes incurred because of the incremental income produced by the project.
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Result from a competitor's loss of market share due to the new project's implementation.
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Are related to the deterioration of the project's fixed assets.
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| Come at the expense of a firm's existing projects. |
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Result from the loss of market value for those assets which are utilized by the project. |
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