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Essay Details:
Essay text:
Test-market expenses, which were included in the first period, are sunk costs because they had
been already expensed for feasibility of the Super project. Therefore, the management should not
include the test-market expenses into calculation of the cash flows.
b. The management did not include the overhead costs into the calculations, but the managerfinancial
analysis proposed to embrace the costs in Alternative 3. However, the management
should not include overhead expenses because overhead expenses affect many areas of the
business and are not attributable to a particular business activity...
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Common topics in this essay:
- Consumer evaluations of sales promotion: the effect on brand choice
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