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Dr. Rappaport is studying short-term memory and attention in relation to a simple and repetitive cognitive task. However, starting in the fifth hour of the 10-hour study he noticed the participants start to yawn and take coffee breaks. Not only were the participants fatigued, but they also were jumpy due to the increased caffeine intake. What should Dr. Rappaport be concerned with?
Sunk Costs
Sunk costs are expenses that have already been incurred and cannot be recovered.
Opportunity Costs
The forfeiture of possible benefits from different options when selecting one option over the others.
Terminal Cash Flow
The net cash flow received or paid at the end of a project's life, including salvage value and net working capital recovery.
Straight Line
A method of calculating depreciation or amortization by spreading the cost evenly over the useful life of an asset.
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