Which of the Following Is NOT Considered a Relevant, Incremental

question 264

Multiple Choice

Which of the following is NOT considered a relevant, incremental cash flow in capital budgeting analysis?

• A) Opportunity costs.
• B) Erosion costs.
• C) Additions to net working capital.
• D) Sunk costs.
• E) Fixed asset salvage values.

---

Definitions:

Eligibility

The state of being qualified or entitled to participate in or receive something based on set conditions.

Employee Retirement Income Security Act

A federal law that sets minimum standards for most voluntarily established pension and health plans in private industry to provide protection for individuals in these plans.

Pension Plans

Financial arrangements that provide retirees with income during retirement, typically funded by employers or the government.

Private Industry

The segment of the economy that is operated by individuals or corporations for profit and is not directly controlled by the government.