Incremental cash flows of a project

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Reference no: EM131195821

Can you add anything to the following definition of a Sunk Cost?

Sunk cost - a cash flow already paid or accrued. These costs should not be included in the incremental cash flows of a project. From an emotional standpoint, it does not matter what investment has already been made. We need to make our decision based on future cash flows, even if it means abandoning a project that has already had a substantial investment.

Reference no: EM131195821

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