Doubts

Summative Quiz Topic 6

Summative Quiz Topic 6

by Sofia Lampreia Alves Garcia -
Number of replies: 1

Dear Julio,

I hope you're well. I had a quick question about the Summative Quiz for Topic 6. 

Without revealing any quiz details, I wanted to check whether the impact a project might have on competitors’ products should be considered when evaluating the project's cash flows. I initially thought it was relevant, but looking at the multiple choice options, I’m not completely sure.

Could you please clarify?

Thank you,

Sofia


In reply to Sofia Lampreia Alves Garcia

Re: Summative Quiz Topic 6

by Julio Crego -
Dear Sofia,

No, it should not. You should only consider your own cash flows. If your project impacts the competition and because of that you can raise prices, then you should include the increase in prices but it is just because it affects your products