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Charge opportunity cost of the land and building.
The salvage value at the end of the project should be included.
Research and Development
Research and development is a sunk cost.
Will additional inventories be required as volume increases?
Recovery of inventories at the end of the project should be included.
Is additional working capital required due to changes in receivables,
Revenue forecasts assume prices (and quantities) will be unaffected by
competition, a common and critical mistake.
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- Spring '14