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Influence of opportunity costs

How do opportunity costs influence the capital budgeting decision-making procedure?
Opportunity costs reflect the foregone benefits of alternative not selected when a capital budgeting project is chosen. Any decrease in the cash flows of the firm tied to the selection of a new project directly could be part of the opportunity cost value and included in our capital budgeting analysis.

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  • Q : Influence of opportunity costs How do

    How do opportunity costs influence the capital budgeting decision-making procedure? Opportunity costs reflect the foregone benefits of alternative not selected when a capital budgeting project is chosen. Any decrease in the cash flows of the fi