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 incremental income produced by the project.
	Result from a competitor's loss of market share due to the new project's implementation.
	Are related to the deterioration of the project's fixed assets.
	Come at the expense of a firm's existing projects.
	Result from the loss of market value for those assets which are utilized by the project.