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ABC Energy company leased the mineral rights to drill for oil and gas on 10,000 acres for $500,000. Now the firm is trying to determine
ABC Energy company leased the mineral rights to drill for oil and gas on 10,000 acres for $500,000. Now the firm is trying to determine whether the cost to drill the well is justified given the poor results on nearby acreage. For financial decision-making, the $500,000 should be: ANSWER Unselected included in the analysis. Unselected considered a sunk cost and ignored. Unselected considered an erosion cost and ignored. Unselected I DON'T KNOW YET
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