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Sunk costs. Sunk costs are costs that have already been incurred and they are irrelevant to a decision. A new project idea might promise a
Sunk costs. Sunk costs are costs that have already been incurred and they are irrelevant to a decision. A new project idea might promise a 20% return but there may be an argument that we just spent money on a different piece of equipment making a different product and we are barely breaking even. This does show some history but it is irrelevant to the decision at hand. Does anyone have experience with sunk costs?
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