Erosion Costs Are Defined as the Cash Flows of a New

Multiple Choice

Erosion costs are defined as the cash flows of a new project that:

A) Are related to the deterioration of the project's fixed assets.
B) Come at the expense of a firm's existing projects.
C) Are related to the taxes incurred because of the incremental income produced by the project.
D) Result from a competitor's loss of market share due to the new project's implementation.
E) Result from the loss of market value for those assets which are utilized by the project.