In estimating cash flows, the firm should exclude:

A) the interest expense on debt financing.
B) opportunity costs.
C) sunk costs.
D) a and c
E) a, b, and c

Interest Expense

The cost incurred by an entity for borrowed funds, which can include the cost of bonds, loans, or lines of credit.

Opportunity Costs

The potential benefits an individual, investor, or business misses out on when choosing one alternative over another.

Sunk Costs

Costs that have already been incurred and cannot be recovered.