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Which one of the following is true? O If a project's initial cost at time zero is increased, then the net present value of the
Which one of the following is true? O If a project's initial cost at time zero is increased, then the net present value of the project will increase. Sensitivity analysis is used to analyze a new project's the most optimistic, the most realistic, and the most pessimistic outcome that can reasonably be expected. In the analysis of a new product, market value of a machine owned by the firm which will be used to produce the new product should NOT be included. Money ALREADY spent for research of the new product SHOULD be included in the analysis of a new product. The best method of analyzing mutually exclusive projects is the net present value. O
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