Which of the following is not a cash flow that results from the decision to accept a project? Group of answer choices Opportunity costs

Finance Dec 12, 2020

Which of the following is not a cash flow that results from the decision to accept a project?

Group of answer choices

Opportunity costs.

Externalities.

Changes in working capital.

Shipping and installation costs.

Sunk costs.

Expert Solution

Sunk cost is a cost that has already been incurred and thus cannot be recovered. Hence, it is not advisable to include it in a decision to accept or reject a project. So, the correct option is 5th "Sunk Costs".

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