Sunk costs can be defined as: Multiple Choice The costs resulting from losses in current projects due to the implementation of a new project The initial, or start-up, costs of a project that cannot be recouped should the new project be implemented. Any and all costs necessary to implement a new project or activity. Any and all fixed costs that are incurred as the result of accepting a new project or activity, The costs that have already been incurred and will not change whether or not a project is accepted The bottom-up approach to computing the operating cash flow applies only when: Multiple Choice The interest expense is equal to zero. No fixed assets are required for the project Both the depreciation expense and the interest expense are equal to zero. The project is a cost-cutting project Taxes are ignored and the interest expense is equal to zero