Which of the following is NOT a cash flow and thus should not be reflected in the analysis of a capital budgeting project?
A)changes in net operating working capital
B)shipping and installation costs
C)cannibalization effects
D)sunk costs that have been expensed for tax purposes

Question

Quizplus · Accepted Answer

Sunk costs are costs that have already been incurred and cannot be recovered or changed. They should not be considered in the analysis of a capital budgeting project because they do not represent future cash flows associated with the project.

Which of the Following Is NOT a Cash Flow and Thus