What Is a Sunk Cost? Should It Be Included in the Incremental

question 79

Essay

What is a sunk cost? Should it be included in the incremental cash flows for a project? Why or why not?

---

Definitions:

Water Molecule

A molecule consisting of two hydrogen atoms bonded to one oxygen atom, represented chemically as H2O.

Molecular Shape

The three-dimensional arrangement of atoms within a molecule, determined by the chemical bonds and electron pairs surrounding the central atom.

Carbon Monoxide

A colorless, odorless, and toxic gas, consisting of one carbon atom and one oxygen atom.

Geometry

The branch of mathematics concerned with the properties and relations of points, lines, surfaces, and solids.