Identify each of the cash flows as an opportunity cost, a sunk cost, a terminal cash flow, an initial investment, a component of new working capital, an externality cost, or a component of operating cash flow (Types of costs can be used more than once or not at all.)

a. $20,000 increase in sales for existing product if new service is introduced [ Select ] ["Opportunity cost", "Terminal cash flow", "Sunk cost", "Net working capital", "Externality cost", "Initial investment", "Operating cash flow"]

b. $1,200 to install equipment last year [ Select ] ["Sunk cost", "Terminal cash flow", "Net working capital", "Initial investment", "Operating cash flow", "Opportunity cost", "Externality cost"]

c. $1,600 increase in comic book sales if a store starts selling puzzles [ Select ] ["Externality cost", "Net working capital", "Opportunity cost", "Initial investment", "Operating cash flow", "Sunk cost", "Terminal cash flow"]

d. $14,000 increase in accounts receivable due to a new store opening [ Select ] ["Initial investment", "Opportunity cost", "Terminal cash flow", "Sunk cost", "Operating cash flow", "Externality cost", "Net working capital"]

e. Equipment that can be sold for $100,000 at the end of the project [ Select ] ["Externality cost", "Terminal cash flow", "Sunk cost", "Initial investment", "Operating cash flow", "Net working capital", "Opportunity cost"]

f. New equipment that costs $100,000 [ Select ] ["Externality cost", "Net working capital", "Opportunity cost", "Terminal cash flow", "Operating cash flow", "Initial investment", "Sunk cost"]

g. New equipment will provide $40,000 in annual cost savings [ Select ] ["Sunk cost", "Operating cash flow", "Terminal cash flow", "Opportunity cost", "Initial investment", "Net working capital", "Externality cost"]