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    Principles of Corporate Finance Study Set 3
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    Exam 6: Making Investment Decisions With the Net Present Value Rule
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    Briefly Explain How the Cost of Excess Capacity Is Taken
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Briefly Explain How the Cost of Excess Capacity Is Taken

Question 29

Question 29

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Briefly explain how the cost of excess capacity is taken into consideration.

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Many managers assume that the marginal c...

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