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Firm Y is considering a project. The project will launch a product they believe will increase the value of the firm. Should they reject the
Firm Y is considering a project. The project will launch a product they believe will increase the value of the firm. Should they reject the project, Firm Y can sell the patent rights to another firm for $100,000. Should the $100,000 be included in the capital budgeting analysis for the project? Yes, as an opportunity cost Yes, as a replacement cost No, it is a sunk cost Yes, as an externality
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