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Which of the following rules is NOT correct for capital budgeting analysis? The interest paid on funds borrowed to finance a project must not be
Which of the following rules is NOT correct for capital budgeting analysis? The interest paid on funds borrowed to finance a project must not be included in the projects estimated cash flows. Sunk costs are not included in the cash flows analysis. Only incremental cash flows are relevant when making accept/reject decisions. If a product is competitive with some of the firms other products, this fact should not be incorporated into the estimate of the relevant cash flows.
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