question archive When evaluating a capital project, the firm should consider all of the following factors EXCEPT for A
When evaluating a capital project, the firm should consider all of the following factors EXCEPT for A
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When evaluating a capital project, the firm should consider all of the following factors EXCEPT for
A. changes in working capital attributable to the project
B. previous expenditures associated with market research to determine the feasibility of the project
C. the current market value of any equipment to be replaced
D. the effects of our competitors response to our project
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Answer:
B. previous expenditures associated with market research to determine the feasibility of the project
Reason :-It is a sunk cost and therefore should be ignored.
