When Is It Appropriate to Include Sunk Costs in the Evaluation

question 63

Multiple Choice

When is it appropriate to include sunk costs in the evaluation of a project?

• A) Include sunk costs when they are relatively large.
• B) Include sunk costs if they improve the project's NPV.
• C) Include sunk costs if they are considered to be overhead costs.
• D) It is never appropriate to include sunk costs.

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Definitions:

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