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:

Prefix

A word, letter, or number placed before another, often to modify or alter its meaning.

Peri-

A prefix meaning around or surrounding, often used in medical terms.

Prefix

A word, letter, or number placed before another to alter its meaning or to form a new word, such as 'un-' in 'unlikely' or 'bio-' in 'biographical'.

Bilateral

Involving two sides, or affecting both sides of the body.