Hi Mr John I'm finding it hard to understand relevant and irrelevant cost...I can't answer questions about this topic...Thank you?..
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Relevant vs irrelevant
11y ago#1It is needed for investment appraisal DCF questions.
The relevant costs are all future, extra, cash costs.
Money that has already been spent is not relevant.
Any non-cash items (such as depreciation) are not relevant.
Finally, it is the extra (incremental) costs to the company of doing the project that matter.
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