Question
Which item should be considered when a company estimates the cash flows used to analyze a proposed project? a. The new project is expected to
Which item should be considered when a company estimates the cash flows used to analyze a proposed project? a. The new project is expected to reduce sales of one of the companys existing products by 5%. b. The firm would borrow all the money used to finance the new project, and the interest on this debt would be $1.5 million per year. c. Since the firms director of capital budgeting spent some of her time last year to evaluate the new project, a portion of her salary for that year should be charged to the projects initial cost. d. The company has spent and expensed $1 million on R&D associated with the new project.n
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