In: Finance
Which of the following is considered to be an example of a side
cost or benefit for investment analysis?
1 Project Cannibalization
2 Project Synergies
3 Opportunity Costs
1 only
1 and 2 only
2 and 3 only
1,2 and 3
Which of the following statements is true about side
projects?
1 Opportunity costs are not considered relevant for cash flow
analysis
2 Product cannibalization occurs when a project compromises the
value created by another
3 Project synergies are commonly anticipated when one firm acquires
another
1 only
1 and 2 only
2 and 3 only
1,2 and 3
Which is the following is considered to be an example of a side cost or benefit for investment analysis?
1 Project Cannibalization
2 Project Synergies
3 Opportunity Costs
Ans: 1,2 and 3
These all determines the cash flows to be generated and hence is considered as side cost/benefit while investing
Which of the following statements ir true about side projects?
2 Product cannibalization occurs when a project compromises the value created by another
3 Project synergies are commonly anticipated when one firm acquires another
Ans : 2 and 3 only
Opportunity costs are considered relevant for cash flow analysis. Hence, the above statement is not true