When evaluating a new project, the firm must consider all off the following factors EXCEPT:

Managerial Economics: Applications, Strategies and Tactics (MindTap Course List)
14th Edition
ISBN:9781305506381
Author:James R. McGuigan, R. Charles Moyer, Frederick H.deB. Harris
Publisher:James R. McGuigan, R. Charles Moyer, Frederick H.deB. Harris
Chapter17: Long-term Investment Analysis
Section: Chapter Questions
Problem 8E
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When evaluating a new project, the firm must consider all off the following factors EXCEPT:
 

Sunk costs such as previous expenditures associated with a market test to determine the feasibility of the project.

Changes in net operating working capital attributable to the project.
 
The current after-tax salvage value of a piece of previously acquired land where the new project will be housed.
 
The side effect that the project may have on the firm’s current business and operation.
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