Last year, a marketing study costing $40,000 was done on the feasibility of a new instant dry nail polich. You are now tasked with estimating the cash flows for this project and will ultiamtely make an accept or reject decision. Which of the following is true? This is an externality and should be included This is an externality and should not be included This is an opportunity cost and should be included This is an opportunity cost and should not be included This is an sunk cost and should be included This is an sunk cost and should not be included
Last year, a marketing study costing $40,000 was done on the feasibility of a new instant dry nail polich. You are now tasked with estimating the cash flows for this project and will ultiamtely make an accept or reject decision. Which of the following is true? This is an externality and should be included This is an externality and should not be included This is an opportunity cost and should be included This is an opportunity cost and should not be included This is an sunk cost and should be included This is an sunk cost and should not be included
Managerial Accounting: The Cornerstone of Business Decision-Making
7th Edition
ISBN:9781337115773
Author:Maryanne M. Mowen, Don R. Hansen, Dan L. Heitger
Publisher:Maryanne M. Mowen, Don R. Hansen, Dan L. Heitger
Chapter12: Capital Investment Decisions
Section: Chapter Questions
Problem 52P
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Last year, a marketing study costing $40,000 was done on the feasibility of a new instant dry nail polich. You are now tasked with estimating the cash flows for this project and will ultiamtely make an accept or reject decision. Which of the following is true?
This is an externality and should be included
This is an externality and should not be included
This is an
This is an opportunity cost and should not be included
This is an sunk cost and should be included
This is an sunk cost and should not be included
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