You Are Evaluating a New Project That Will Introduce a Revolutionary

question 50

Multiple Choice

You are evaluating a new project that will introduce a revolutionary new product that will be produced by a new, highly efficient machine. Which one of these will lower the net present value of that project?

• A) A reduction in the firm's total variable costs due to the purchase of the new machine
• B) A loss of current sales due to the introduction of the new product
• C) The increase in annual depreciation resulting from the asset purchase
• D)The sale of the machine after it is fully depreciated

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Definitions:

Conservation Biology

The science of protecting and managing biodiversity to prevent species, their habitats, and ecosystems from excessive rates of extinction.

Economic

Relating to the system of production, distribution, and consumption of goods and services in a society, and the study of how scarce resources are allocated.

Biomass

The total mass of all living organisms in a given area or volume; it can also refer to plant or animal matter used as fuel.