Cash Flows That Are Foregone If the Project Is Undertaken

question 180

Multiple Choice

Cash flows that are foregone if the project is undertaken should be included in cash flow estimation. Such a foregone resource is normally referred to as:

• A)sunk costs.
• B)opportunity costs.
• C)resource relinquishment.
• D)None of the above

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Definitions:

Developing Others

The act of helping people grow and improve their skills or abilities, often through teaching, mentoring, or leadership.

Encouragement

The act of giving support, confidence, or hope to someone.

Galatea Effect

An individual’s high self-expectations lead to high performance.

Pygmalion Effect

The phenomenon in which individuals perform better or worse based on the expectations set by those in authority positions.