Question
1.Which of the following is an example (or are examples) of a sunk cost in a capital budgeting analysis? (read all alternatives prior to answering)
1.Which of the following is an example (or are examples) of a sunk cost in a capital budgeting analysis? (read all alternatives prior to answering)
a.The amount paid for a building you currently own and intend to utilize for a project
b.The current market value of a building you own and intend to utilize for a project
c.the increase in inventory required to begin a new project
d.the price of a consultant's report that has not yet been paid, but will be paid regardless of whether the project is accepted or rejected
e.both a and d are examples of sunk costs
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