In the NPV analysis, sunk cost is not relevant whereas opportunity cost is for project evaluation.

Requirements:

Explain and justify the above statement about sunk cost and opportunity cost.

 

 

Posted Date: 2/16/2013 1:22:36 AM | Location : United States

Ask an Expert

Related Discussions:- Explain sunk cost and opportunity cost in npv, Assignment Help, Ask Question on Explain sunk cost and opportunity cost in npv, Get Answer, Expert's Help, Explain sunk cost and opportunity cost in npv Discussions

Write discussion on Explain sunk cost and opportunity cost in npv
Your posts are moderated

Write your message here..

Related Questions

Case study, what are the assumptions of MM(Modigliani Miller) approach what are the assumptions of MM(Modigliani Miller) approach

Define the hirfindahl-hirschman index, What is the Hirfindahl-Hirschman Ind... What is the Hirfindahl-Hirschman Index? A: The Hirfindahl-Hirschman Index, or HHI, is the standard measure employed by economists to evaluate market concentration. The greater

Show the working capital in a business, Q. Show the Working capital in a bu... Q. Show the Working capital in a business? Working capital in a business is essential since of operating cycle. However the need for working capital doesn't come to an end afte

Accounting, Accounting : Many people believe financial management only r... Accounting : Many people believe financial management only relates to bookkeeping and the establishment of accounting reports which reflect those transactions in the books.  Whi

The need and analyse different savings instruments, Question 1 Financial p... Question 1 Financial planning is a process of assessing the goals of an investor. Discuss the meaning, need and scope of Financial planning Question 2 Money management is the

Security required in bank finance, Q. Security Required in Bank Finance? ... Q. Security Required in Bank Finance? 1) Hypothecation: Under this arrangement, the borrower is provided with working capital finance by the bank against the security of mova

What is the trade payable days, What is the Trade payable days (turnover) ... What is the Trade payable days (turnover) Year-end trade payables/Credit purchases (or cost of sales)x   365days This is the length of time taken to pay suppliers. The rat

Explain swap dealer, Explain Swap Dealer A swap dealer is a market make... Explain Swap Dealer A swap dealer is a market maker of swaps and predicts a risk position in matching opposite sides of a swap and in making sure that every counterparty fulfil

NPV, Roxanne invested $560,000 in a new business 7 years ago. The business ... Roxanne invested $560,000 in a new business 7 years ago. The business was expected to bring in $8,000 each month for the next 26 years (in excess of all costs). The annual cost of

Explain systematic risks in financial management, Q. Explain Systematic Ris... Q. Explain Systematic Risks in Financial management? Systematic risk in non-diversifiable and is associated with the securities Market as well as economic, sociological, politi