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.

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Definitions:

DMM

Stands for Digital Multimeter, an electronic instrument that measures electrical values such as voltage, current, and resistance.

Low-Amperage Circuits

Electrical circuits designed to carry a small amount of electrical current, often for delicate electronic devices or low power applications.

Resistance

The opposition offered by a material or device to the flow of electrical current, measured in ohms.

Decrease

A reduction in size, quantity, or degree.