Quantitative Investment And Financial Management Accounting Analysis

Your contribution to the discussion requires 2-3 paragraphs, use of proper grammar, and citing of sources. Participation in the weekly discussion provides the opportunity to learn and apply new information in manageable amounts of timely contributions, and to receive useful feedback.

Referencing textbook readings, lecture material, and current business resources explain why sunk costs should not be included in a capital budgeting analysis but opportunity costs and externalities should be included. Give an example of each – sunk cost, opportunity cost and externality (positive or negative). Use example(s) for the company you are working for or refer to examples from the business news (WSJ, Bloomberg etc.)

Also, explain why net operating working capital is included in a capital budgeting analysis and how it is recovered at the end of a project’s life.