Sunk costs are monies that

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1. Sunk costs are monies that:

a. will be needed in the future.

b. have already been spent.

c. deal with the future value of an annuity.

d. will be recaptured in the future.

2. An asset originally cost $630,000 and will be depreciated straight-line over seven years. It will be used for a five year project at which time the asset will be sold for $221,000. What is the after tax cash flow from the sale of the asset if the tax rate is 34%?

a. $221,000 b. $14,000 c. $13,940 d. $207,060

Reference no: EM132073550

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