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If Ford introduces a new auto line, might some of the cash flows from that new car line be diverted from existing product lines? (Select
If Ford introduces a new auto line, might some of the cash flows from that new car line be diverted from existing product lines? (Select the best choice below.) If Ford introduces a new auto line that might compete with the firm's existing product lines, then new-product sales achieved at the cost of losing sales of existing product lines are considered as sunk costs that should be excluded in capital-budgeting analysis. If Ford introduces a new auto line that might compete with the firm's existing product lines, this is called a synergistic effect. If Ford introduces a new auto line that might compete with the firm's existing product lines, then new-product sales achieved at the cost of losing sales of existing product lines should also be considered as a benefit in capital-budgeting analysis. If Ford introduces a new auto line that might compete with the firm's existing product lines then only the increments sales new line brings to the company should be considered in determining the free cash flows in capital-budgeting analysis
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