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A firm is considering the implementation of a new project to produce slippers. The already owned equipment to be used has sufficient spare capacity to
A firm is considering the implementation of a new project to produce slippers. The already owned equipment to be used has sufficient spare capacity to allow this new production without affecting existing product ranges. The production manager suggests that because the equipment has been paid for it is a sunk cost and should not be included in the project appraisal calculations. Do you accept his argument?
A firm is considering the implementation of a new
project to produce slippers. The already owned equipment
to be used has sufficient spare capacity to allow
this new production without affecting existing product
ranges. The production manager suggests that because
the equipment has been paid for it is a sunk cost and
should not be included in the project appraisal calculations.
Do you accept his argument?
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Financial Management For Public Health And Not For Profit Organization
Authors: Steven A. Finkler
3rd International Edition
0138152772, 9780138152772
