Avail E Homework: Week 5 - Chapter 11 Question 2, P11-6 (similar to) Part 1 of > HW Score: 0%, 0 of 100 points Points: 0 of 25 Save clocked Out # Break Mi Rom Bres 0 Sunk and opportunity cash flows Dave and Ann Stone have been living at their current home for the past 6 years. During that time, they have replaced the water heater for 5369, replaced the dishwasher for $612. and have had to make miscellaneous repair and maintenance expenditures of approximately 51,450. They have decided to move out and rent the house for $980 per month Newspaper advertising will cont 570. Dave and Ann intend to paint the interior of the home and powerwash the exteriorThey estimate that will run about 5865 The house should be ready to rent after that in reviewing the financial station, Dave views all the expenditures as being relevant and so he plans to net out the estimated expenditures discussed above from the rental income a. Do Dave and Ann understand the difference between Aunk costs and opportunity costs? Explain the two concepts to them b. Which of the expenditures should be classified as sunk costs and which should be viewed as opportunity costi? 0 0 0 8 0 a. Do Dave and Ann understand the dance between aurk costs and opportunity cos? Explain the concepts to the Select the best answer below 0 OA Surk costs are any added concury to get into operation Opportunity cost cash flows that could be led brom the next best alternative use of an owned OB. Sunk conto we could that have already been incuted and then the money has already been spent Opportunity chwydded corecary to get anno operation OC. Sunkconies are conts that have already been incurred and thus the money has already been spent Opportunity cosechowe that could be realized troon the next best alternative use of an owned as OD. Sunkowie cash flowers that could be maliced from the next bestematiese an owned Opportunity costs are cools that have had been incurred and thus the money has already been spent 0 0