Which of the following would not be expected to affect the decision of whether to undertake an investment?
A)income tax rates.
B)estimates of inflation rates.
C)sales reductions in other products caused by this investment.
D)cost of the feasibility study which was conducted for this project.

Question

Quizplus · Accepted Answer

The cost of the feasibility study is a sunk cost and should not affect the decision of whether to undertake an investment. Income tax rates, estimates of inflation rates, and sales reductions in other products caused by this investment are all factors that should be considered in the decision-making process.

Which of the Following Would Not Be Expected to Affect