what is a sunk cost is it relevant when


What is a sunk cost?  Is it relevant when evaluating a proposed capital budgeting project?  Explain.

A sunk cost is a cash flow that has already takes placed, or that will take place, whether a project is rejected or accepted.  It is unrelated when evaluating a proposed project. 

 

 

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Financial Management: what is a sunk cost is it relevant when
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