Sales will ultimately decline as the product nears obsolescence or faces increased competition.
B.
Managers sometimes continue to invest in a project that has a negative NPV because they have already invested a large amount in the project and feel that by not continuing it, the prior investment will wasted.
C.
With straight-line depreciation the asset's cost is divided equally over its life.
D.
A projects unlevered net income is equal to its incremental revenues less costs and depreciation, evaluated on an pre-tax basis.