Equipment originally bought for $4,000 which now has no resale value is a sunk cost.

Name: Equipment originally bought for $4,000 which now has no resale value is a sunk cost.
Brand: Quizplus
Rating: 4.9 (53 reviews)

Question

Quizplus · Accepted Answer

A sunk cost is a cost that has already been incurred and cannot be recovered, regardless of any future actions that may be taken. In this case, the equipment has no resale value, meaning that the initial cost of $4,000 cannot be recovered. Therefore, it is a sunk cost.

Equipment Originally Bought for $4,000 Which Now Has No Resale