You are using capital budgeting techniques to evaluate the purchase of a new piece of equipment. What is the best description of an opportunity cost? Your firm owns a warehouse that it rents. The new equipment will occupy this space. This means that this you will forgo the warehouse rent income.

Group of answer choices

In the project cash flow, we will treat his as cash neutral.

In the project cash flow, we will treat this as a cash inflow.

In the project cash flow, we will treat this as a cash outflow.

In the project cash flow, we will treat this as operating income.