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Which of the following statements is CORRECT? Answer An example of a sunk cost is the cost associated with restoring the site of a strip
Which of the following statements is CORRECT? Answer An example of a sunk cost is the cost associated with restoring the site of a strip mine once the ore has been depleted. Sunk costs must be considered if the IRR method is used but not if the firm relies on the NPV method. A good example of a sunk cost is a situation where a bank opens a new office, and that new office leads to a decline in deposits of the bank
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