+1 862 207 3288 1. Explain why sunk costs should not be included in a capital budgeting analysis but opportunity costs and externalities should be included.
2. Explain how net working capital is recovered at the end of a project's life and why it is included in a capital budgeting analysis.
3. In general, is an explicit recognition of incremental cash flows more important in new project analysis or replacement analysis? Why?
