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When building a project's cash flows, there may be side effects of the proposed project on other part of the firm such as Multiple Choice

When building a project's cash flows, there may be side effects of the proposed project on other part of the firm such as

Multiple Choice

  • Erosion, when the new project decreases the cash flow of already existing projects of the firm.

  • Synergy, when a new project increases the cash flow of existing projects.

  • Both erosion and synergy may occur.

  • None of the options.

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