Future project by undertaking a feasibility study

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A firm evaluates a future project by undertaking a feasibility study. If the project is accepted it will reduce demand for existing products it sells. The firm will have to borrow money to fund the project. Which of the following cash flows is relevant to evaluating the NPV of this project?

None of the above are relevant to calculating the NPV.

Financing costs associated with the firm borrowing money.

The amount of revenue lost as a result of cannibilised sales from reduced demand.

The cost of the feasibility study.

Reference no: EM131660516

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