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The project will require an initial investment of $20,000, but the project will also be using a company-owned truck that is not currently being used. This truck could be sold for $9,000, after taxes, if the project is rejected. What should Garida do to take this information into account?

a. Increase the amount of the initial investment by $9,000

b. Increase the NPV of the project by $9,000

c. The company does not need to do anything with the value of the truck because the truck is a sunk cost

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Financial Management, Finance

Category:- Financial Management
Reference No.:- M91608418

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