Relevant cash flow
When evaluating whether to proceed with a project, the firm should consider all of the following factors EXCEPT which one? (i.e., Which is a "not relevant" versus " relevant" cash flow?)
a. changes in working capital attributable to the project
b. sunk costs already incurred
c. the current market value of any equipment to be sold and replaced
d. the resulting difference in depreciation if the project involves a replacement decision
e. all of the above should be considered.
...topedia," Relevant cost is used to describe costs that are specific to management's decisions. The concept of relevant costs eliminates unnecessary data that could complicate the decision-making process. ...