Which of the following should be included in the analysis of a proposed project?

Question

Quizplus · Accepted Answer

When analyzing a proposed project, it is important to consider various costs such as incremental costs, sunk costs, opportunity costs, erosion, and synergy. Therefore, option D is the best choice as it includes all these relevant costs in the analysis. Option A is not sufficient as it only considers incremental and sunk costs, while option B only includes erosion and sunk costs along with opportunity costs. Option C also falls short as it only considers opportunity costs and synergy but ignores other important costs. Option E is too specific as it only considers incremental costs minus sunk costs plus synergy, which may not be enough to provide a thorough analysis.

Which of the Following Should Be Included in the Analysis