Question

Opportunity costs are defined as ____. Costs of the capital projects that are under consideration by...

Opportunity costs are defined as ____.

Costs of the capital projects that are under consideration by management

The costs of a project or proposal that are foregone when another opportunity is chosen

Cash outlays that have been incurred and cannot be recovered regardless of the decision

The costs incurred when evaluating all potential capital projects

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Answer #1

Opportunity cost is the cost of the next best alternative. It can result in a positive or negative cash flow.

Hence, the answer is option b.

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