Question 9 Which of the following are sources of good projec

Question 9 Which of the following are sources of good projects? Question 9 options: Economies of scale Cost advantages Capital requirements Product differentiation All of the above

Solution

All of the above.
Because economies of scales help in attaining minimum cost per unit by increasing the size of operations. Cost advantage also helps in identifying good projects as it will make the product more competitive in the market on the basis of price. Capital requirement helps in identifying the initial investment, the depreciation and the tax benefits for the depreciation. Product differentiation helps in creating a competitive edge for the products making it economically feasible.

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