Question
1. Explain why sunk costs should not be included in a capital budgeting analysis, but opportunity costs should be included. How do we include these
1. Explain why sunk costs should not be included in a capital budgeting analysis, but opportunity costs should be included. How do we include these opportunity costs into our analysis
2. What is a real option that may be embedded in a capital budgeting project? Does this add or subtract value from the project?
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Introduction To Mathematical Finance Discrete Time Models
Authors: Stanley R. Pliska
1st Edition
1557869456, 9781557869456
