Question: Classify each item as a sunk cost, cannibalization, opportunity cost, or a change in net working capital ( NWC ) . Then, in the last

Classify each item as a sunk cost, cannibalization, opportunity cost, or a change in net working capital

(

NWC

) .

Then, in the last table, indicate

whether the item should be included in the project's analysis or not.

Suppose Bumbly will be issuing debt to support this project and other capital budgeting projects this year. The firm's interest expense will increase by

700, 000 .

Should the change in interest expense be included in the analysis?

Classify each item as a sunk cost, cannibalization, opportunity cost, or

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