Question: 1 . What is differential analysis and how is it used in decision - making processes? 2 . Consider a company deciding between two projects.

1. What is differential analysis and how is it used in decision-making processes?
2. Consider a company deciding between two projects. Project A has a projected profit of $100,000 and costs $60,000, while Project B has a projected profit of $120,000 and costs $80,000. Using differential analysis, which project should the company choose and why?
3. In differential analysis, how do opportunity costs and sunk costs influence decision-making? Provide an example to illustrate your explanation.

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