Which of the following should be included in an analysis of a new project's cash flows?

Question

Quizplus · Accepted Answer

Any sales from existing products that would be lost if customers were expected to purchase a new product instead should be included in an analysis of a new project's cash flows. This is because it represents an opportunity cost that should be considered when evaluating the potential profitability of the new project. Options B, C, and D are incorrect because financing costs and sunk costs should be accounted for, but opportunity costs should be included, and no costs should be excluded from the analysis.

Which of the Following Should Be Included in an Analysis