Which of the following statements about project cash flows is accurate?
a. Opportunity cost is the best opportunity given up when a new project is accepted; don’t include opportunity costs when calculating a new project’s cash flow stream.
b. Side effects are effects a new project has on cash flows from an existing project; ignore side effects when calculating a new project’s cash flow stream.
c. Sunk costs are costs attributable to a new project but incurred before management has made an accept / reject decision about the new project; exclude sunk costs when calculating a new project’s cash flow stream.