"Mr Stone, I Must Say You Are Making a Mistake

Multiple Choice

"Mr. Stone, I must say you are making a mistake. I know you have spent $6,000 on research and development to develop this project, but that money must not be used as a negative cash flow of the project." Apparently, Mr. Stone does not understand the concept of:

A) side-effect costs.
B) opportunity costs.
C) sunk costs.
D) variable costs.
E) depreciation not taken.