Question
Airbus has invested $50 million in developing a design of a jet plane. Another $10 million is required to complete the design. One of Airbus'
Airbus has invested $50 million in developing a design of a jet plane. Another $10 million is required to complete the design. One of Airbus' engineers develops an alternative design that can be completed for only $8 million. The engineer argues that because the alternative is cheaper than the $10 million required to complete the original design, the original design should be dropped. His boss argues that because Airbus has spent $50 million already, the company can't afford to abandon its original design. Assume the two designs are equally good. True or False: the boss is correct?
1)True
2) False
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