Diamond Chemical

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Title: Diamond Chemical

Essay Details:

Subject: History

Author: Cesar M

Date: December 4, 2015

Level: University

Grade: A

Length: 5 / 1271

Essay text:

Only the cash flows that are incremental to the project are considered. Hence it is important to determine the cash flows that occur as a direct consequence of accepting the project. Sunk Costs: Sunk cost is a cost that has already occurred and such costs should be ignored while considering the incremental cash flows. Opportunity Costs: The revenues that are lost by using an existing asset in a new project are called opportunity costs. This is because the firm forgoes other opportunities by using these assets. Side effects: These are the cash flows that come as a side effect of the new project...

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