Which one of the following is not part of a project's estimated net cash flows?
A)the expected loss in your firm's other businesses due to a new project
B)the cost of a customer survey performed one year before the project decision is made
C)the change in depreciation
D)the change in cash operating costs

Question

Quizplus · Accepted Answer

The cost of a customer survey performed one year before the project decision is made is considered a sunk cost, which is not included in the project's estimated net cash flows. Sunk costs are expenses that have already been incurred and cannot be recovered, thus they do not affect the future cash flows or the decision-making process for a new project.

Which One of the Following Is Not Part of a Project's