Cash Flows on an Alternative Investment That a Firm Decides

question 82

Multiple Choice

Cash flows on an alternative investment that a firm decides not to make are a(n) :

• A) opportunity cost.
• B) sunk cost.
• C) terminal value.
• D) incremental cash flow.

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Definitions:

Statute of Frauds

A legal principle requiring certain types of contracts to be in writing and signed by the parties involved, to be enforceable.

Legalese

A specialized language filled with legal terms and phrases that is often difficult for the layperson to understand.

Statute of Frauds

A legal principle that requires certain types of contracts to be executed in writing and signed by all parties to be enforceable.

Witnesses

Individuals who observe an event, such as the signing of a document, and can attest to its occurrence.