New projects can have multiple effects on a firm.Which one of the following appears to be a positive indirect effect?
A) Additional working capital will be required at the start of the project.
B) The sales force will need to be increased over the life of the project.
C) Sales of replacement parts are expected in the future.
D) The cost of employee benefits will increase due to new hires.

Question

Quizplus · Accepted Answer

Sales of replacement parts in the future indicate potential for recurring revenue streams which can have a positive impact on the firm's financial performance.

New Projects Can Have Multiple Effects on a Firm