What is a sunk cost, Financial Management

Assignment Help:

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

A sunk cost is a cash flow that has already takes placed, or that will take place, whether a project is rejected or accepted.  It is unrelated when evaluating a proposed project. 

 

 


Related Discussions:- What is a sunk cost

Financial statements, What does an inventory turnover of 3.0 suggest? If in...

What does an inventory turnover of 3.0 suggest? If inventory is sold for cash instead of on credit, how will this affect the inventory turnover? If a fi s inventory turnover is 4.0

Prepare monetary statements using accounting standards, Entity A is signifi...

Entity A is significantly smaller than B in terms of revenue and would not impact LOP's revenue to the same extent. However A earns a noticeably better gross profit margin at 26% a

What is the meaning of over-capitalisation, What is the meaning of Over-cap...

What is the meaning of Over-capitalisation It is the opposite of over trading. It means a company has a large volume of inventories, trade receivables and cash balances though

Municipal bonds, 1. Tax-backed debt and 2. Revenue bonds ...

1. Tax-backed debt and 2. Revenue bonds are two types of municipal bonds.

Basic of finance, discuss three approaches to short-term financing

discuss three approaches to short-term financing

The authority and duties of shareholders, The authority and duties of membe...

The authority and duties of members (shareholders) Members and shareholders shall together and severally protect, conserve and actively exercise the supreme authority of the co

Push strategy, Push Strategy This is referred for marketing approa...

Push Strategy This is referred for marketing approach in which a manufacturer uses its sales force and trade promotions to sell a product actively to retailers and wholesa

Food and beverage industry averages, #What are the food and beverages indus...

#What are the food and beverages industry financial ratios for 2011,2010,2009? 1. Liquidity(current/quick), Asset Management(Inventory Turnover, total assets turnover),Debt Menagem

Write Your Message!

Captcha
Free Assignment Quote

Assured A++ Grade

Get guaranteed satisfaction & time on delivery in every assignment order you paid with us! We ensure premium quality solution document along with free turntin report!

All rights reserved! Copyrights ©2019-2020 ExpertsMind IT Educational Pvt Ltd