The annual annuity stream of payments

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Reference no: EM131348756

1. Which one of the following is an example of a sunk cost?

A. $1,800 increase in comic book sales if a store ceases selling puzzles.

B. $1,200 paid to repair a machine last year

C. $20,000 project that must be forfeited if another project is accepted

D. $4,500 reduction in current shoe sales if a store commences selling sandals.

2. The annual annuity stream of payments that has the same present value as a project's costs is referred to as which one of the following?

Yearly incremental costs

Sunk costs

Opportunity costs

Equivalent annual cost

Reference no: EM131348756

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