In Considering the Trade-In of a Vehicle, Which of the Following

question 51

Multiple Choice

In considering the trade-in of a vehicle, which of the following is a sunk cost?

• A) Depreciation on new vehicle
• B) Trade-in value of old vehicle
• C) Purchase price of new vehicle
• D) Original purchase price of the old vehicle

---

Definitions:

Current Dividend

The most recent dividend payment approved by a company's board of directors and distributed to its shareholders.

Yld%

A financial metric typically used to refer to the yield percentage of a bond, indicating the return investors can expect to earn if they hold the bond until maturity.

EPS Growth Rate

The rate at which a company's earnings per share (EPS) are expected to grow over a certain period of time.

Rate of Return

The increase or decrease in the value of an investment during a specified time frame, shown as a percentage of the investment's original price.