Problem:
In corporate finance, we use cash flows from operations. This method differs from financial accounting that emphasizes accounting income and earnings per accounting period. We also use concepts such as net present value and other discounted future value methods to compare projects. With this understanding, can you elaborate on how this would impact a capital project with issues such as sunk costs, opportunity costs, allocated costs, relevant costs and taxes?
Note: Please provide equation and explain comprehensively and give step by step solution.