Which of the following is not an important financial consideration in capital budgeting?

Question

Quizplus · Accepted Answer

Sunk costs are not relevant in capital budgeting decisions because they are costs that have already been incurred and cannot be recovered or changed by the decision to invest. Therefore, they should not factor into the decision-making process. The timing of future cash flows, future profitability, initial cost, and salvage value are all important financial considerations in capital budgeting.

Which of the Following Is Not an Important Financial Consideration