Which of the Following Is NOT a Relevant Cash Flow

question 61

Multiple Choice

Which of the following is NOT a relevant cash flow and thus should NOT be reflected in the analysis of a capital budgeting project?

• A) Changes in net operating working capital.
• B) Shipping and installation costs for machinery acquired.
• C) Cannibalization effects.
• D) Opportunity costs.
• E) Sunk costs that have been expensed for tax purposes.

---

Definitions:

Semantic Memory

A type of long-term memory involving the capacity to remember words, concepts, and numbers, which is essentially memory for knowledge about the world.

Long List Of Words

A sequence or collection of words that is notably extensive, often used in contexts requiring detailed descriptions or exhaustive enumerations.

Grouping Items

The cognitive process of organizing objects, ideas, or information into categories for easier understanding and retrieval.

Recall

The act of retrieving information or events from memory without having been explicitly prompted to do so.