Opportunity costs
will always be smaller than sunk costs for the project.
must never be included when evaluating a project.
must be added to each of the project's cash flows.
must always be included when evaluating a project.
2 .What is the IRR of an investment that cost $150,000 and has OCF of $30,000 dollars a year for 2 years and $48,000 for the next three years?
5.64%
8.88%
10.17%
7.99%
14.64%