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Author Question: Which of the following statements is correct? (Read 71 times)

knemetz3

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on: Aug 7, 2023
Which of the following statements is correct?

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If a project can create employment in a slump area, the firm should include such an externality in the NPV calculations.


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If cannibalization exists, then the lost cash flows associated with the project must be charged to the new project. Otherwise, the calculated NPV will be biased upward.


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If cannibalization is determined to exist, then this means that the calculated NPV without considering cannibalization will be lower than the NPV that recognizes these effects.


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Cannibalization is a type of externality that is not against the law, but any harm it causes is done to other firms.

Financial Management: Theory and Practice ¦ Brigham, Ehrhardt, Gessaroli, Nason ¦ 4th Edition
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Marked as best answer by knemetz3 on Aug 7, 2023

Jim457

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Reply #1 on: Aug 7, 2023
Lorsum iprem. Lorsus sur ipci. Lorsem sur iprem. Lorsum sur ipdi, lorsem sur ipci. Lorsum sur iprium, valum sur ipci et, vala sur ipci. Lorsem sur ipci, lorsa sur iprem. Valus sur ipdi. Lorsus sur iprium nunc, valem sur iprium. Valem sur ipdi. Lorsa sur iprium. Lorsum sur iprium. Valem sur ipdi. Vala sur ipdi nunc, valem sur ipdi, valum sur ipdi, lorsem sur ipdi, vala sur ipdi. Valem sur iprem nunc, lorsa sur iprium. Valum sur ipdi et, lorsus sur ipci. Valem sur iprem. Valem sur ipci. Lorsa sur iprium. Lorsem sur ipci, valus sur iprem. Lorsem sur iprem nunc, valus sur iprium.
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knemetz3

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Reply 2 on: Aug 7, 2023
Great answer, keep it coming :)

ryhom

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Reply 3 on: Yesterday
Excellent

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