As a rule,any cash flows that are not affected by the accept/reject criterion should not be included in capital-budgeting analysis.

Question

Quizplus · Accepted Answer

Only cash flows that are directly affected by the accept/reject decision should be included in capital-budgeting analysis. Other cash flows, such as sunk costs or incidental expenses, are considered irrelevant and should not impact the decision.

As a Rule,any Cash Flows That Are Not Affected by the Accept/reject