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:

Line Extension

Introducing additional items in the same product category under the same brand name, often with new flavors, sizes, or ingredients.

Xbox Brand

A video gaming brand created and owned by Microsoft, encompassing a range of video game consoles, games, and services.

Product Line Depth

The range of variations, such as size, color, or other attributes, offered for a particular product line.

Zappos

An online retail company known for its wide selection of shoes and clothing, along with a strong focus on customer service.