When Is It Appropriate to Include Sunk Costs in the Evaluation

question 14

Multiple Choice

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

• A) Whenever they are relatively large
• B) If they improve the project's NPV
• C) If they are considered to be overhead costs
• D) Never

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Definitions:

ACSM Guidelines

Recommendations set forth by the American College of Sports Medicine regarding physical activity and exercise for health and fitness.

Muscle Fitness Training

Exercise routines designed to increase muscle strength, endurance, and mass through resistance and weight training.

PRICE Method

An acronym for Protection, Rest, Ice, Compression, and Elevation; a first-aid strategy used to treat minor injuries or reduce pain and swelling.

Exercise-Related Sprains

Injuries to ligaments caused by the overstretching or tearing that occurs during physical activity.