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Sony decided to develop a new digital camcorder. The project costs 2 2 billion yen to complete. The managers expected that the new camcorder would
Sony decided to develop a new digital camcorder. The project costs billion yen to complete. The managers expected that the new camcorder would bring billion yen in additional sales. After Sony already invested billion yen, it suddenly found out that Canon was introducing a similar camcorder, which is expected to reduce Sony's revenue from its new camcorder to billion yen. You'd advise Sony tc
discontinue the project because the total amount of investment it requires is greater than the amount of expected sales
finish the project to get the worth of the money invested in it
finish the project and introduce the new camcorder because the revenue from it will be greater than the investments to be made to complete the project
discontinue the project because the company's additional sales would be less than its sunk cost
discontinue the project because the additional costs of completing it would be greater than the additional revenue the camcorder brings
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