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<p><strong>(a) of small amount,</strong></p> <p><strong>(b) not incremental,</strong></p> <p><strong>(c) not reversible,</strong></p> <p><strong>(d) All of the above.</strong></p>
Answer is B because A sunk cost is a cost that has already occurred, so it cannot be part of the incremental cash flows of a capital budgeting analysis.
