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PetrolHead Motors Inc. sells 1,000,000 gasoline-fueled vehicles per year with operating cash flows of $3 billion annually. An engineer at PetrolHead has invented a solar-powered
PetrolHead Motors Inc. sells 1,000,000 gasoline-fueled vehicles per year with operating cash flows of $3 billion annually. An engineer at PetrolHead has invented a solar-powered car constructed from recycled paper. The car (codenamed the SunCar) will be free to operate and incredibly cheap to produce. You have been tasked with computing the NPV of the SunCar project. You are subtracting $3 billion per year because it is a(n): Sunk cost Externality O Indirect cost
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