Which of the following is NOT considered a relevant, incremental cash ﬂow in capital budgeting analysis?

Question

Quizplus · Accepted Answer

Sunk costs are past costs that cannot be changed regardless of the decision made. They are not relevant to incremental cash flows in capital budgeting analysis because they are not affected by the project's cash flows. The other options, such as opportunity costs, erosion costs, additions to net working capital, and fixed asset salvage values, are all relevant incremental cash flows that are taken into consideration in capital budgeting analysis.

Which of the Following Is NOT Considered a Relevant, Incremental