Opportunity costs incurred due to a proposed project

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Reference no: EM131498030

1. Opportunity costs incurred due to a proposed project generally should be included in the capital budgeting analysis.

a) True

b) False

2. Because depreciation is a 'non-cash' expense, it has no impact on a capital budgeting analysis.

a) True

b) False

3. A cost that has already been incurred and cannot be recovered is called an 'erosion cost'.

a) True

b) False

4. We add a new product line, and as a result other product lines enjoy a higher level of sales too. This is an example of 'synergy benefits'.

a) True

b) False

Reference no: EM131498030

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