Which should be viewed as opportunity cash flow

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Reference no: EM131536431

Sharon Stone has been living at her current home for over 9 years. Within the past 4 years, she has replaced the water heater for $190, replaced the dishwasher for $700, and has made other repairs estimated to be about $1100. She plans to move to her new home in a few weeks and plans to rent her current home for $1500 monthly. Advertising the home for rent in the news journal will cost $60. She also plans to do some painting of the interior and power wash the exterior. The cost of which will be $800. All of the above expenditures are relevant to Sharon, and she plans to net out the expenditures from the rental income.

Which of the above expenditures should be classified as sunk cash flows and which should be viewed as opportunity cash flow?

Reference no: EM131536431

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