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

Question

Quizplus · Accepted Answer

The analysis of a new project's cash flows should include any sales from existing products that would be lost if customers were expected to purchase a new product instead. This is because the new project may cannibalize existing products, leading to lost revenue. All financing costs and sunk costs should also be included, but opportunity costs should not be excluded from the analysis.

Which of the Following Should Be Included in an Analysis