The statement "We've got too much invested in that project to pull out now" possibly illustrates the need to:
A)switch to another CCA method.
B)be reacquainted with the concept of sunk costs.
C)reduce net working capital assigned to the project.
D)reduce discount rates to improve NPV.

Question

Quizplus · Accepted Answer

The statement suggests that the project team is considering continuing with the project even though it may no longer be profitable or feasible. This is a classic example of the sunk cost fallacy, where decisions are based on past investments rather than future benefits. The best course of action may be to reevaluate the project and its potential profitability, regardless of how much has already been invested.

The Statement "We've Got Too Much Invested in That Project