The relevance of a sunk cost to the evaluation of a capital budgeting project depends on how recently in the past the cost was incurred.

Name: The relevance of a sunk cost to the evaluation of a capital budgeting project depends on how recently in the past the cost was incurred.
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Sunk costs are costs that have already been incurred and cannot be recovered, and therefore should not influence the decision-making process for future investments or projects, regardless of how recently they were incurred.

The Relevance of a Sunk Cost to the Evaluation of a Capital