Define a sunk cost, Financial Management

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

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