Statements about project cash flows is accurate

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Reference no: EM131558564

Which of the following statements about project cash flows is accurate?

a. Opportunity cost is the best opportunity given up when a new project is accepted; don’t include opportunity costs when calculating a new project’s cash flow stream.

b. Side effects are effects a new project has on cash flows from an existing project; ignore side effects when calculating a new project’s cash flow stream.

c. Sunk costs are costs attributable to a new project but incurred before management has made an accept / reject decision about the new project; exclude sunk costs when calculating a new project’s cash flow stream.

Reference no: EM131558564

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