A Student Is Considering Whether to Finish Their University Program

question 194

Essay

A student is considering whether to finish their university program in four consecutive years, or take a year off and work for some extra cash.Required:
a.Identify at least two revenues or costs that are relevant to making this decision.Explain why each is relevant.
b.Identify at least two costs that would be considered sunk costs for this decision.
c.Comment on at least one qualitative consideration for this decision.

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Definitions:

Investing Activities

Financial transactions related to the purchase and sale of long-term assets and investments, as reported on a company's cash flow statement.

Net Cash

Net Cash refers to the amount of cash available after accounting for cash inflows and outflows.

Operating Activities

Activities that relate to the company's primary operations, such as sales, delivery of services, and production.

Net Cash

The net cash remaining following the calculation of cash incomes and expenditures.