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

Opportunity Costs

The price paid by not choosing the second-best option available during decision-making.

Foregone Resource

The benefits or income lost when one option is chosen over another, essentially another term for opportunity cost but often used in the context of tangible resources.

Cash Flow Estimation

The process of predicting the amount of money that will move in and out of a business in a future period.