Which of the Following Is Not a Cash Flow That

question 16

Multiple Choice

Which of the following is not a cash flow that results from the decision to accept a project?

• A) Changes in working capital.
• B) Shipping and installation costs.
• C) Sunk costs.
• D) Opportunity costs.
• E) Externalities.

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Definitions:

Constraints

Limitations or restrictions that impact the options available for decision-making, project plans, or process outcomes.

IS Function

Information Systems Function, which encompasses the management of processes, hardware, software, and personnel involved in storing, retrieving, and processing information within an organization.

Technological Limitations

Constraints or restrictions imposed by the current state of technology, hindering progress or achieving certain goals.

NPV

Net Present Value, a financial metric that calculates the present value of all cash flows associated with an investment, including both inflows and outflows, discounted at the project's cost of capital.