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What is a side effect? How is it treated in capital budgeting analysis? Give an example....

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Finance

What is a side effect? How is it treated in capital budgetinganalysis? Give an example. What are you trying to achieve when youdeal with side effects in your analysis?

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Capital budgeting is choosing between capital projects based on their future strictly incrementalcash inflows outflows also depending on the amount of investible cash funds available at presentthat necessitate the analysis of choices for decisionmaking so as to decide on the ones that will add value to the firm eliminate or leave out the rest    See Answer
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