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Question 4 15 MARKS Answer the following questions: a) What is a sunk cost? (2 marks) b) Under what circumstances are sunk costs relevant to

Question 4 15 MARKS Answer the following questions: a) What is a sunk cost? (2 marks) b) Under what circumstances are sunk costs relevant to a decision? (3 Marks) c) Construct an example of a sunk cost. (5 marks) d) Briefly discuss why you think financial reports for investors and managerial reports for managers may or may not differ in their treatment of sunk costs.(5 marks)

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