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Respond to each question with an answer of a sentence or two: a) Why might recognizing the existence of a real option raise, but not

Respond to each question with an answer of a sentence or two:

a) Why might recognizing the existence of a real option raise, but not lower, a project's NPV as found in the traditional manner?

b) What determines whether a preliminary expenditure is a sunk cost or a project cost for capital investment purposes?

c) Why should funds raised to satisfy the additional funds needed be considered long term funds?

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