--%>
Assignment Help - homework help

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.

   Related Questions in Finance Basics

  • Q : Describe relationship among a bonds

    Describe relationship among a bond's market price and its promised yield to maturity? Describe.A bond's market price based on its yield to maturity (YTM). While a bond has YTM greater than its coupon rate, it sells at discount from its face va

    		•
  • Q : Define Financial Planning Financial

    Financial Planning: It is a comprehensive assessment of an investor's present and future financial state by employing presently known variables to forecast future cash flows, asset values and the withdrawal plans.

  • Q : Analysis On Financial Indices On a

    On a weekly basis, starting from week ending on 18/1, you need to produce a weekly performance report of the major indices around the world following this structure:  Currencies a. USD vs Yen, vs GBP(GBP/USD), vs. Swiss Franc (USD/CHF) b. Euro vs USD, Y

    		•
  • Q : Determine per unit cost of production

    Normal 0 false false

  • Q : How is finance associated to accounting

    How is finance associated to the disciplines of accounting and economics? Financial management is basically a combination of accounting and economics. Firstly, financial managers employ accounting information such

    		•
  • Q : How do mergers influence consumers How

    How do mergers influence consumers?The effects mergers have on consumers differ widely. There may be some inconvenience and anxiety while a customer's bank or branch is obtained. The issuance of new account numbers and new checks is a familiar h

    		•
  • Q : Pros and cons of commercial paper

    Describe pros and cons of commercial paper associated to bank loans for a company seeking short-term financing? Usually commercial paper is a cheaper source of short-term financing for a firm, compared to bank loans. Also, a larger amount of fu

    		•
  • Q : Measuring net output GDP in a specific

    Why do national income accountants comprise only final goods in measuring net output GDP in a specific year? Why don't they comprise the value of stocks and bonds bought & sold? Why don't they comprise the value of utilized furniture bought and so

    		•
  • Q : What is Working Capital and Revolving

    Working Capital and Revolving Fund: For legal base accounting purposes, fund categorization for funds employed to account for the transactions of self-supporting enterprises which render goods or services for a direct charge to the user that is genera

    		•
  • Q : Question on hypothetical economy Normal

    Normal 0 false false