The Most Valuable Investment Given Up If an Alternative Investment

question 65

Multiple Choice

The most valuable investment given up if an alternative investment is chosen is a(n) :

• A) Salvage value expense.
• B) Net working capital expense.
• C) Sunk cost.
• D) Opportunity cost.
• E) Erosion cost.

---

Definitions:

Scene Identification

The cognitive process of recognizing and categorizing a visual environment or context in which an event takes place.

Functional Fixedness

A cognitive bias that limits a person to using an object only in the way it is traditionally used, hindering problem-solving abilities.

Confirmation Bias

The tendency to search for, interpret, favor, and recall information in a way that confirms one’s preexisting beliefs or hypotheses.

Availability Heuristic

A mental shortcut that relies on immediate examples that come to a given person's mind when evaluating a specific topic, concept, method, or decision.