Why must opportunity costs must be included in cash flows

Assignment Help Finance Basics
Reference no: EM13256721

Why must opportunity costs must be included in cash flows, while sunk costs and interest expense must not?

Reference no: EM13256721

Questions Cloud

Compare and contrast the uses of break-even analysis : Compare and contrast the uses of break-even analysis and sensitivity analysis in evaluating project risk.
Detrmine the phase angles of the two frequency components : The output/ input of a system is 30dB. detrmine the ratio Express x(t)=4*cos(100*t-45)+ 2*cos(250*t+30) in terms of exponential functions Then Detrmine the phase angles(in degrees) of the two frequency components of x(t).
Explain novel fuel mixtures for potential use in automobiles : You are testing some novel fuel mixtures for potential use in automobiles. Your testing apparatus is a 2.54-cm inner diameter cylinder fitted with a piston, designed to mimic a cylinder found in a car engine.
Determine the rate of return earned on the fund : If the amount awarded each year is $15,000, determine the rate of return earned on the fund.
Why must opportunity costs must be included in cash flows : Why must opportunity costs must be included in cash flows, while sunk costs and interest expense must not?
Complete the balance sheet by using financial data : Following is the 2006 balance sheet for Sumi Industries. Complete the balance sheet by using the information that follows it.
What is the best way to select a project : What is the best way to select a project that has resource restrictions? Explain.
Corporate form of ownership : You are planning to start a small business that youwant to run as a sole proprietor. A friend of yours, who has beenan employee of an IT consulting corporation for 3 years, suggests that the corporate form of ownership is more efficient from accou..
What is an additional rental fee : Greetings, I returned my textbook and it reflects as delivered by UPS. I was still charged last night for an additional rental fee and the book does not reflect returned by Chegg. Could you please review this? Thank you, Victoria.

Reviews

Write a Review

Finance Basics Questions & Answers

  Theory of purchasing power parity

Explain the theory of purchasing power parity (PPP). Based on this theory, what is a general forecast of the values of currencies in countries with high inflation?

  Profit maximization

To maximize amount of income realized from a rate increase, charges should be raised most in departments with:

  Downward push on the prices of commodities

Developing countries have often attempted to make cartels so as to counter the actual or perceived inexorable downward push on prices of their exported commodities.

  Calculation of present value of a bond

Calculation of present value of a bond and The bonds pay interest semiannually each June 30th and December 31st and mature on December 31, 2018

  Full-time and part-time implications

What implications do these changes have for employee motivation and involvement in organization? What lessons must people seeking jobs learn from experiences of these employees?

  True or false question based on stock valuation

There are Two investors are evaluating General Motors stock for a possible stock buy. They agree on the expected value of and also on the expected future dividend increase rate.

  Find the maximum percent of stock

Nelson purchased 1,300 shares of stock for $12.75 a share. The initial margin requirement is 70% and the maintenance margin is 40%.

  Solving financial problems

Penn Steelworks is a distributor of cold-rolled steel products to the automobile industry. All of its sales are on a credit basis, net thirty days. Sales are evenly distributed over its 10 sales regions throughout US.

  Determine the selling price of bonds

A Company has an issue of $1000 par value bonds with a 12% stated interest rate outstanding. The issue pays interest yearly and has ten years remaining to its maturity date.

  The slope of the regression line

A graph shows a corporation's common stock returns on the Y axis and the market returns on the X axis. The slope of the regression line represents

  Difference between breakeven points for two machines

Suppose that you and your brother plan to open a business that will make and sell a newly designed type of sandal. Two robotic machines are available to make the sandals, Machine A and B.

  Calculate the firms operating cycle

James Corporation is worried about managing cash efficiently. On the average, inventories have an age of 90 days, and accounts receivable are collected in sixty days.

Free Assignment Quote

Assured A++ Grade

Get guaranteed satisfaction & time on delivery in every assignment order you paid with us! We ensure premium quality solution document along with free turntin report!

All rights reserved! Copyrights ©2019-2020 ExpertsMind IT Educational Pvt Ltd