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You are considering investing in a new project, Project B. Your firm has already invested in one project, Project A. If the cash flows to
You are considering investing in a new project, Project B. Your firm has already invested in one project, Project A. If the cash flows to Project A will increase when you invest in Project B, should you include the entire cash flows to Project A in your valuation of Project B, include the new cash flows to Project A in the valuation of Project B, or exclude any cash flows to Project A in the valuation of Project B? Explain your answer.
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