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13 16 10 14 Quiz Information 12 13 15 21 $1,200,000 Question 3 (1 point) General Motors is currently evaluating the NPV of producing
13 16 10 14 Quiz Information 12 13 15 21 $1,200,000 Question 3 (1 point) General Motors is currently evaluating the NPV of producing a line of track cars. They paid a consulting firm $6 million to come up with marketing analysis for their cars. Does that $6 million play a part in the capital budgeting decision that General Motors management is making? No, the $6 million is an opportunity cost and is not part of the analysis. No, the $6 million has already been paid and is a sunk cost. Yes, the $6 million is counted as an accounting cost and reduces net income. Yes, the $6 million is a cash outflow and should be considered.
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