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Q.

Which of the following is not true with reference to capital budgeting?

[A] Capital budgeting is related to asset replacement decisions.

[B] Cost of capital is equal to minimum required rate of return.

[C] Timing of cash flows is relevant

[D] Existing investment in a project is not treated as sunk cost

Answer & Explanation
Answer: Existing investment in a project is not treated as sunk cost

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