Question
Imagine that there is Project A, which is housed in a factory. If the company does Project A, then it cannot sell the factory right
Imagine that there is Project A, which is housed in a factory. If the company does Project A, then it cannot sell the factory right now in which Project A is housed. If the company does not do Project A, then the factory is immediately sold for $20M. When you are calculating the cash flow of Project A, should you include the $20M as the initial loss?
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Foundations of Financial Management
Authors: Stanley Block, Geoffrey Hirt, Bartley Danielsen
16th edition
125927716X, 978-1259687969, 1259687961, 978-1259277160
