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When evaluating potential projects, which of the following factors should be inc

ID: 2746010 • Letter: W

Question

When evaluating potential projects, which of the following factors should be incorporated as part of a project’s estimated cash flows?

Any sunk costs that were incurred in the past prior to considering the proposed project.

Any opportunity costs that are incurred if the project is undertaken.

Any incremental after-tax cash flows associated with the project being considered.

Statements b and c are correct.

Any sunk costs that were incurred in the past prior to considering the proposed project.

Any opportunity costs that are incurred if the project is undertaken.

Any incremental after-tax cash flows associated with the project being considered.

Statements b and c are correct.

Explanation / Answer

Statements b and c are correct

sunk cost shall not be taken in to account.

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