Assignment:
Q1. Why is it true, in general, that a failure to adjust expected cash flows for expected inflation biases the calculated NPV downward?
Q2. Explain why sunk costs should not be included in a capital budgeting analysis, but opportunity costs and externalities should be included.
Your answer must be, typed, double-spaced, Times New Roman font (size 12), one-inch margins on all sides, APA format and also include references.