Question
The government has been trying to decide whether or not to purchase any stealth bombers. One of the arguments in favor of purchasing the bombers
The government has been trying to decide whether or not to purchase any stealth bombers. One of the arguments in favor of purchasing the bombers is that since so much money has been spent on their development, it would be a waste of money not to buy any. What is the major problem with this argument? a. It doesn't consider the opportunity cost of the money that has been spent. b. It includes sunk costs in the decision. c. It includes possible erosion of the purchase of other bombers. d. It includes changes in net working capital. e. It includes financing costs in the decision.
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