Explain why sunk costs should not be included

Reference no: EM13286537

Explain why sunk costs should not be included in a capital budgeting analysis, but opportunity cots and externalities should be included. Give an example of each.

Reference no: EM13286537

Questions Cloud

What is the cost of preferred stock : Samuelson Plastics has 7.5 percent preferred stock outstanding. Currently, this stock has a market value per share of $52 and a book value per share of $38. What is the cost of preferred stock?

Device circuit to apply across one lamp or two lamps : Using 1.5v batteries, a switch, and 3 lamps, device a circuit to apply 4.5v across one lamp, two lamps in series, or three lamps in seris with a single control switch. Draw the schematic.

What are some differences in the analysis for a replacement : What are some differences in the analysis for a replacement project versus that for a new expansion project?

Explain what volume would the same amount of gas occupy : At standard temperature and pressure (0 C and 1.00 atm ), 1.00 mol of an ideal gas occupies a volume of 22.4 L . What volume would the same amount of gas occupy at the same pressure and 35 C ? Express your answer numerically in liters.

Explain why sunk costs should not be included : Explain why sunk costs should not be included in a capital budgeting analysis, but opportunity cots and externalities should be included. Give an example of each.

Determine average voltage of waveform and the rms voltage : A rectagular waveform has a 50% duty cycle (hight for 1/2 a cycle and low for 1/2 a cycle). It goes between two voltage levels of -3 V (low) and +8 V (high), and has a period of 100 μs. determine the average voltage of this waveform and the RMS vol..

Which of the following would likely encourage a firm : Which of the following would likely encourage a firm to increase the debt in its capital structure?

Explain the pressure inside a hydrogen-filled container : The pressure inside a hydrogen-filled container was 2.10 atm at 21 C . What would the pressure be if the container was heated to 85 C

Find current flowing in each load befor connecting capacitor : 120V, 60 Hz source is connected to a distribution line whose resistance, and inductive reactance is 0.001Ohm, j0.002 Ohm, respectively. Single phase, 10HP, 120V, 0.85 pf. motor and 4Kw, 120V heater are connected in parallel.

User Account

All Pages