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How does opportunity cost concept affect capital budgeting

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Reference no: EM132953729

Problem 1: Define capital expenditures and provide examples of capital expenditures.

Problem 2: Cash flows for a particular project should be measured on an incremental basis. What does that mean?

Problem 3: How does the opportunity cost concept affect capital budgeting cash flow determination?

Problem 4: What factors should be considered when estimating a new business' NINV? Is it any different for an asset replacement project. 127

Reference no: EM132953729

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