Which of the following is NOT a relevant cash flow and thus should not be reflected in the analysis of a capital budgeting project?

Question

Quizplus · Accepted Answer

Sunk costs that have already been expensed for tax purposes are not relevant for capital budgeting decisions because they have already been paid and cannot be recovered. The other options (shipping and installation costs, cannibalization effects, opportunity costs, and changes in net working capital) are all relevant cash flows that must be considered in capital budgeting analysis.

Which of the Following Is NOT a Relevant Cash Flow