Asked by

Khyla Blevins
on Dec 20, 2024

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Which of the following is not used in the development of cash flow estimates for capital projects?

A) Opportunity costs
B) Financing costs
C) Depreciation costs
D) Taxes
E) Overhead costs

Opportunity Costs

The cost of foregoing the next best alternative when making a decision.

Financing Costs

Expenses a company pays to borrow funds or raise capital through equity, including interest payments, fees, and other charges.

Depreciation Costs

The allocation of the cost of an asset over its useful life, reflecting the decrease in value due to wear and use.

  • Learn the factors considered in cash flow estimation for capital projects.
  • Differentiate between the various types of costs related to capital budgeting such as sunk, opportunity, and financing costs.
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CS
Chris SchardtDec 25, 2024
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