1. Opportunity costs incurred due to a proposed project generally should be included in the capital budgeting analysis.
a) True
b) False
2. Because depreciation is a 'non-cash' expense, it has no impact on a capital budgeting analysis.
a) True
b) False
3. A cost that has already been incurred and cannot be recovered is called an 'erosion cost'.
a) True
b) False
4. We add a new product line, and as a result other product lines enjoy a higher level of sales too. This is an example of 'synergy benefits'.
a) True
b) False