When analyzing a proposed project, a cash flow that is unaffected by the decision to accept or reject the project is called: the after-tax salvage value

Finance Dec 21, 2020

When analyzing a proposed project, a cash flow that is unaffected by the decision to accept or reject the project is called: the after-tax salvage value. an incremental cash flow. a financing cost. a sunk cost. an opportunity cost.

Expert Solution

The correct answer is Sunk cost

Explanation

Sunk cost is the cost which is already been incurred and cannot be recovered.

This is the cost which will not have any effect on the acceptability of the project.

So SUNK COST is the correct answer.

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