Explain sunk cost and opportunity cost in npv, Financial Management

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







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
Related Questions
Rating Symbol Capacity for Timely Repayment Rating Symbol Capacity for Timely Repay

Given below are the cash flows of a project. Find out the net present value of the project. Cost of capital is 18% and initial investment is Rs. 2,00,000. Year Cash Flows (lakhs)

Q. Rate of the growth of the business? The working capital requirement of the a concern increase with the growth and expansion of the business activity although it is difficu

Illustration Consider a Rs.1,000 par value bond whose current market price is Rs.850. The bond carries a coupon rate of 8% and has a maturity period of 9 years. Wha

Discuss how a business might limit agency problem between management and creditors

how would you incorporate currency exchange risk into the capital budgeting process of foreign investment.

Criticism of Profit Maximization Approach: (i) Ambiguous: - One practical complexity with this approach is that the term profit is ambiguous. Different people take dissimilar me

nestle is an orgnization wether bureacratic approach approperiate for the organizational performance or not?

I just purchased a stock that would pay the dividends of the first four years as D1 = $0.65, D2 = $0.74, D3 = $0.79, D4 = $0.84. I also told that the dividends would grow continual