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SOLVED: 1. Which of the following statements is CORRECT?a. An externality is a situation where a project would have an adverse effect on some other part of the firm's overall operations. If the project would have a favorable effect on other operations, then this is not an externality.b. An example of an externality is a situation where a bank opens a new office, and that new office causes deposits in the bank's other offices to decline.c. The NPV method automatically deals correctly with externa
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