Which of the Following Is an Example of a Sunk

question 117

Multiple Choice

Which of the following is an example of a sunk cost in a capital budgeting decision regarding the replacement of an existing piece of equipment for a profitable business that pays taxes?

• A) The disposal (salvage) value of the equipment to be replaced.
• B) The original purchase price of the equipment to be replaced.
• C) The additional net working capital requirement.
• D) The operating cost of the new equipment.
• E) Income taxes on the disposal of the equipment to be replaced.

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Definitions:

Evaluative Listening

A listening style where the listener analyzes or judges the content of a message, often assessing its truthfulness, usefulness, or relevance.

Emotion-Laden Words

Words specifically chosen to evoke emotional responses from a listener or reader to influence thoughts or actions.

Listening

The active process of receiving and understanding messages communicated by others, often emphasized as a key skill in effective communication and sales.

Empathy

The ability to understand and share the feelings of another, key in building meaningful relationships and effective communication.