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

A sunk cost is a cash flow which has previously occurred, or that will take place, if a project is accepted or rejected.  It is not relevant while evaluating a proposed project.

Posted Date: 5/7/2013 4:04:45 AM | Location : United States

Ask an Expert

Related Discussions:- Define a sunk cost, Assignment Help, Ask Question on Define a sunk cost, Get Answer, Expert's Help, Define a sunk cost Discussions

Write discussion on Define a sunk cost
Your posts are moderated

Write your message here..

Related Questions

Accounting or average rate of return , I need a report on Accounting or Ave... I need a report on Accounting or Average Rate of Return. Can you please assist me for Accounting or Average Rate of Return report for about 2500 words?

#title.OPERATING CYCLE, DISCUSS THE APPLICABILITY OF OPERATING CYCLE IN VEG... DISCUSS THE APPLICABILITY OF OPERATING CYCLE IN VEGETABLE GROWING.

Surplus economic unit deal with a deficit economic unit, What can a financi... What can a financial institution often do for a surplus economic unit that it would have difficulty doing for itself if the surplus economic unit (SEU) were to deal directly with a

Illustrate example of company objectives, Example of Company Objectives ... Example of Company Objectives Divide from the problem of which goal a company ought to pursue are the questions of which goals companies claim to pursue and which goals they a

Yield spread strategies, Bond market can be classified into various s... Bond market can be classified into various segments based on the nature of characteristics such as type of issuer (central bank, corporate etc.), credit risk (ris

Treasury auction cycle, The treasury auction cycle constitutes weekly... The treasury auction cycle constitutes weekly auctions in case of 3-month and 6-month bills and auction for every fourth week in case of yearly bills. These are f

Mergers and acquisitions, Mergers and Acquisitions It is a Process of b... Mergers and Acquisitions It is a Process of business combination. There are 3 forms of business combination: 1. M1.    M1 has the highest liquidity. This is the narrowest t

State the analytical procedures at the planning stage, State the Analytical... State the Analytical procedures at the planning stage Auditors must apply analytical procedures at the planning stage to help in understanding the entity's business, in identi

Portfolio duration, We can measure the portfolio duration by calculat... We can measure the portfolio duration by calculating the weighted average of the duration of the bonds in the portfolio. The proportion of the portfolio that a se

Finance case study, This case has been framed in order to test the skills i... This case has been framed in order to test the skills in evaluating a credit request and reaching a correct decision. Perluence International is large manufacturer