Which of the Following Statements Is CORRECT

question 56

Multiple Choice

Which of the following statements is CORRECT?

• A) A sunk cost is any cost that must be expended in order to complete a project and bring it into operation.
• B) A sunk cost is any cost that was expended in the past but can be recovered if the firm decides not to go forward with the project.
• C) A sunk cost is a cost that was incurred and expensed in the past and cannot be recovered if the firm decides not to go forward with the project.
• D) Sunk costs were formerly hard to deal with,but once the NPV method came into wide use,it became possible to simply include sunk costs in the cash flows and then calculate the project's NPV.
• E) A good example of a sunk cost is a situation where Home Depot opens a new store,and that leads to a decline in sales of one of the firm's existing stores.

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Definitions:

Null Hypothesis

A hypothesis that states there is no effect or no difference, and it serves as the default assumption that is tested against the alternative hypothesis.

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Individual objectives or targets that a person aims to achieve, which can be related to various aspects of life, such as career, education, or personal development.

Chi-square Test

A statistical evaluation aimed at identifying a meaningful connection between two categorical variables.

Null Hypothesis

A default hypothesis that there is no significant effect or relationship between two measured phenomena.