Answer
No, I don't agree. Not all overhead costs are relevant in NPV (Net Present Value) analysis. Only the overhead costs that are directly associated with a particular project and would be incurred if the project is undertaken are relevant. Overhead costs that would be incurred regardless of the project's existence are considered irrelevant to NPV analysis because they do not affect the project's incremental cash flows. It's essential to distinguish between relevant and irrelevant costs when calculating NPV to make accurate investment decisions.
Work Step by Step
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