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1 5) Capital budgeting is the process of analyzing A) Short-term investments. B) Cash outflows only C) Operating revenues E) Investments with certain outcomes only

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1 5) Capital budgeting is the process of analyzing A) Short-term investments. B) Cash outflows only C) Operating revenues E) Investments with certain outcomes only 19) An opportunity cost: A) Requires a current outlay of cash. B) Is an unavoidable cost because it remains the same regardless of the alternative chosen. C) Results from D) Is the podential benefit lost by choosing a specific alternative course of action among two or E) Is irrelevant in decision making because it occurred in the past past managerial decisions. that cannot be avoided or changed because it arises from a past decision, and is irrelevant to A) Uncontrollable cost. B) Out-of-pocket cost. future decisions, is called an): C) Opportunity cost D) Incremental cost E) Sunk cost. 21) A company paid $200,000 t years ago for a specialized machine that has no salvage value and is considering using the machine in and annual cash expenses of is an example of ten being depreciated at the rate of S10,000 per year. The company is a new project that will have incremental revenues of $ $20,000. In anal a(n): yzing the new project, the $200,000 original cost of the machine A) Incremental cost. B) Opportunity cost C) Sunk cost. D) Variable cost. E) Out-of-pocket cost

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