Money that has been or will be paid regardless of the


1. Money that has been or will be paid regardless of the decision whether or not to proceed with the project is:

A) cannibalization.

B) considered as part of the initial investment in the project.

C) an opportunity cost.

D) a sunk cost.

2. Current Assets – Current Liabilities =

A) Fixed overhead expenses

B) Free cashflow

C) Net working capital

D) Salvage value

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Financial Management: Money that has been or will be paid regardless of the
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