Which of the following is true: a. Sunk costs are irrelevant to capital budgetin

Question

Which of the following is true:
a. Sunk costs are irrelevant to capital budgeting decisionmaking. b. Opportunity costs are relevant to capital budgetingdecision making. c. Overhead costs that previously existed within the firm, buthave been reallocated to a new project, are not relevant whenanalyzing that new project. d. All of the above. Which of the following is true:
a. Sunk costs are irrelevant to capital budgeting decisionmaking. b. Opportunity costs are relevant to capital budgetingdecision making. c. Overhead costs that previously existed within the firm, buthave been reallocated to a new project, are not relevant whenanalyzing that new project. d. All of the above.

Explanation / Answer

Answer:d. All of the above.

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