Which of the Following Is NOT a Relevant Cash Flow

question 48

Multiple Choice

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

• A) Changes in net working capital.
• B) Shipping and installation costs.
• C) Cannibalization effects.
• D) Opportunity costs.
• E) Sunk costs that have been expensed for tax purposes.

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Definitions:

Intellectualization

A defense mechanism where reasoning is used to block confrontation with an unconscious conflict and its associated emotional stress.

Post-Traumatic Stress Disorder

A psychiatric disorder that can occur in people who have experienced or witnessed a traumatic event, characterized by flashbacks, anxiety, and persistent disturbing thoughts.

Catastrophic Thinking

An irrational thought leading individuals to believe that something is far worse than it actually is.

Primary Appraisal

The initial evaluation process where an individual assesses the significance of a stressor or threatening event.