How is opportunity cost concept used in capital budgeting

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1. What are the potential tax consequences of selling an old asset in an asset replacement investment decision?

2. Why is it generally incorrect to consider interest charges when computing a project's net cash flows?

3. Distinguish between asset expansion and asset replacement projects. How does this distinction affect the capital expenditure analysis process?

4. How is the opportunity cost concept used in the capital budgeting process?

Reference no: EM13928331

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