Why sunk costs are irrelevant for decision-making

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Reference no: EM133536936

Assignment:

First, I need to think about my home or car, for instance. Basically, if I decide to stay each night in my home or drive my car many miles every day, does my rent/mortgage or car payment vary?
What about my electric or water usage at home, or my monthly gasoline usage?
How do I explain why sunk costs are irrelevant for decision-making?
Also, is there an example of citing a personal experience where, for instance I incurred a sunk cost and how I handled the experience?

Reference no: EM133536936

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