When is it appropriate to include sunk costs in the evaluation of a project?
A) Include sunk costs when they are relatively large
B) Include sunk costs if it improves the project's NPV
C) Include sunk costs if they are considered to be overhead costs
D) It is never appropriate to include sunk costs
Correct Answer:
Verified
Q2: Allocations of overhead should not affect a
Q4: If a project is expected to increase
Q5: The rationale for not including sunk costs
Q6: Working capital will affect incremental cash flows
Q7: If the adoption of a new product
Q8: Corporate income statements are designed primarily to
Q9: If a project's cash flows include those
Q10: Changes in net working capital can occur
Q11: The opportunity cost of an asset:
A)Should be
Q40: Which of the following is least likely
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