Which of the below statements is FALSE? OA. A synergy gain occurs when a new product can be introduced that complements another current product so that sales for this current product increases. OB. Whenever a new product competes against a company's already existing products and reduces the sales of other products, erosion costs occur. OC. Increases in working capital accounts necessary to support a project add upfront costs, but also provide for cost reductions at the end of the project. OD. Sunk costs can reduce a project's cash flows.

Which of the below statements is FALSE? OA. A synergy gain occurs when a new product can be introduced that complements another current product so that sales for this current product increases. OB. Whenever a new product competes against a company's already existing products and reduces the sales of other products, erosion costs occur. OC. Increases in working capital accounts necessary to support a project add upfront costs, but also provide for cost reductions at the end of the project. OD. Sunk costs can reduce a project's cash flows.

Fundamentals Of Financial Management, Concise Edition (mindtap Course List)

10th Edition

ISBN:9781337902571

Author:Eugene F. Brigham, Joel F. Houston

Publisher:Eugene F. Brigham, Joel F. Houston

Chapter13: Capital Structure And Leverage

Section: Chapter Questions

Problem 2Q: Would each of the following increase, decrease, or have an indeterminant effect on a firms...

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