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Discuss in depth how opportunity cost, cannibalization, positive externalities, and sunk costs are instrumental in capital...

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Finance

Discuss in depth how opportunity cost, cannibalization, positiveexternalities, and sunk costs are instrumental in capital budgetingdecision making.

Answer & Explanation Solved by verified expert
3.9 Ratings (375 Votes)
Opportunity cost refers to the cost of losing the next best option The opportunity cost must be taken into consideration in capital budgeting to understand and incorporate the cost of losing the other option    See Answer
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Discuss in depth how opportunity cost, cannibalization, positiveexternalities, and sunk costs are instrumental in capital budgetingdecision making.

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