Which of the following is NOT a relevant cash flow and thus should NOT be reflec
ID: 2699480 • Letter: W
Question
Which of the following is NOT a relevant cash flow and thus should NOT be reflected in the analysis of a capital budgeting project? a. Changes in net operating working capital. b. Opportunity costs. c. Sunk costs that have been expensed for tax purposes. d. Cannibalization effects. e. Shipping and installation costs for machinery acquired. Which of the following is NOT a relevant cash flow and thus should NOT be reflected in the analysis of a capital budgeting project? a. Changes in net operating working capital. b. Opportunity costs. c. Sunk costs that have been expensed for tax purposes. d. Cannibalization effects. e. Shipping and installation costs for machinery acquired.Explanation / Answer
c. Sunk costs that have been expensed for tax purposes.
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