Which of the Following Should Be Included in an Analysis

question 82

Multiple Choice

Which of the following should be included in an analysis of a new project's cash flows?

• A) any sales from existing products that would be lost if customers were expected to purchase a new product instead
• B) all financing costs
• C) all sunk costs
• D) no opportunity costs

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Definitions:

Simple Interest Rate

Interest calculated only on the principal amount, not on the interest earned in previous periods.

Term Of Loan

The duration scheduled for the repayment of the loan.

Simple Interest

A method of calculating the interest charge on a loan based on the original principal amount and the rate of interest per period.

Annum

A Latin term for year, often used in financial contexts to denote per year.