The ____ of an asset are the cash flows that the asset could generate if it were not used in the project under consideration.

Question

Quizplus · Accepted Answer

Opportunity costs represent the potential returns that could have been earned if an asset was used in its next best alternative use. Sunk costs, on the other hand, are costs that have already been incurred and cannot be recovered. Marginal costs are the additional costs incurred by producing one more unit of a good or service, while net investments represent the difference between the initial cost of an asset and its sale price or salvage value.

The ____ of an Asset Are the Cash Flows That