Sunk Costs Are a Type of Incremental Cash Flow That

question 17

True/False

Sunk costs are a type of incremental cash flow that should be included in all capital-budgeting decisions.

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Definitions:

Categorical

Pertaining to data that can be divided into specific groups or categories that are qualitatively distinct.

Categorical Variables

Variables that represent categories with qualitative characteristics, such as gender, race, or yes/no responses, and do not inherently carry a numerical value.

Information

Data that have been processed, organized, or structured in a way that adds meaning or value, making it useful for decision-making or analysis.

Quantitative Variables

Variables that can be quantified and measured, having numeric values that represent different magnitudes of the variable.