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In Determining the Price or Initial Cash Outlay of a Project

Question 32

Multiple Choice

In determining the price or initial cash outlay of a project, it is necessary to consider the following items:


A) initial outlays for land, buildings and equipment.
B) developmental costs for the undertaking itself and the product it is intended to produce.
C) the cost to the firm of any increase in working capital requirements attributable to the project.
D) if applicable, the after tax salvage value of any existing equipment.
E) all of the above.

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