Which of the following statements is most CORRECT? 1. You should generally include sunk costs when evaluating a project'
Posted: Sat Feb 26, 2022 9:10 am
Which of the following statements is most CORRECT? 1. You should generally include sunk costs when evaluating a project's NPV. 2. You should generally ignore opportunity costs when evaluating a project's NPV. 3. You should generally ignore externalities when evaluating a project's NPV. 4. If Project X's cash flows are negatively correlated with the cash flows from the firm's other projects, Project X may reduce corporate risk even though the project may have a high level of stand-alone risk. 5. All the statements above are correct.