Which of the following is TRUE regarding ESTIMATION OF PROJECT CASH

FLOWS?

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Part 1

A.

Increases in net working capital increase a project's cash flows.

B.

Whenever a new product competes against a company's already existing products and reduces the sales of other products, opportunity costs occur.

C.

A synergy gain occurs when a new product can be introduced that complements another current product so that sales for this current product increases.

D.

Sunk costs can reduce a project's cash flows.