________ involve(s)a cash flow that never occurs,but we need to add it as a cost or outflow of a new project.
A)Cost recovery of divested assets
B)Capital expenditures
C)Sunk costs
D)Opportunity costs

Question

Quizplus · Accepted Answer

Opportunity costs involve the cost of a foregone alternative, which may include a cash flow that never actually occurs but is still factored in as an outflow of a new project. For example, if a company decides to invest in a new project, it may have to forego potential revenue from another project or investment opportunity. This foregone revenue would be considered an opportunity cost and factored into the decision-making process for the new project.

________ Involve(s)a Cash Flow That Never Occurs,but We Need to Add