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Suppose a company is evaluating a project to launch a new product. We estimates that if we launch the new product: i ) Sales of
Suppose a company is evaluating a project to launch a new product. We
estimates that if we launch the new product:
i Sales of existing products decrease
ii The company's interest costs will increase
iii The stock level will rise at the start of the project and then decrease towards the end of the project
Which of the above should the company consider when
calculating the NPV of the project? options: iii and iii
i only
i and iii
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