Define a sunk cost, Financial Management

Assignment Help:

What is a sunk cost?  Is it relevant while evaluating a proposed capital budgeting project?  Explain.

A sunk cost is a cash flow which has previously occurred, or that will take place, if a project is accepted or rejected.  It is not relevant while evaluating a proposed project.


Related Discussions:- Define a sunk cost

Assignment, Imagine you have been allocated $100,000 which is to be investe...

Imagine you have been allocated $100,000 which is to be invested in 8 companies listed on the Australian Stock Exchange (ASX). You are required to have a balanced portfolio betwee

Traditional treatmentof financial management, Traditional treatmentof finan...

Traditional treatmentof financial management Traditional treatment was found to have a lacuna to the extent that focus was on long-term financing. Its natural implication was t

Ratio analysis, How can we calculate ration analysis in financial managemen...

How can we calculate ration analysis in financial management?? Determine the ration analysis? Need assignemt help on this topic

Illustrate the term quality of benefits, Illustrate the term quality of ben...

Illustrate the term quality of benefits It is clear from Table that total returns associated with two alternatives are identical in a normal situation but range of variati

Determine earnings per share - shares of common stock, SAM Technology had A...

SAM Technology had AED 640,000,000 of retained earnings on December 31, 2012. The company paid common dividends of  AED 30,000,000 in 2012 and had retained earnings of  AED 500,000

Which method should we use to valuate young companies, Which method should ...

Which method should we use to valuate young companies with high growth but uncertain futures? Two examples were Boston Chicken and Telepizza when they began. The great majo

Protected put, Protected Put A protected put would involve a long put a...

Protected Put A protected put would involve a long put and a long stock. For example - ONGC. Underlying stock = Rs. 809 Buy Mar Rs. 900 Put @ Rs.68.8   Total cos

Matching or accrual, Matching or Accrual   The accrual concept makes...

Matching or Accrual   The accrual concept makes a distinction among the receipt of cash and the right to receive it, and the payment of cash and legal obligation to pay it.

Accounting pricniple, The salaries paid in 2004 is Rs.500000; salaries outs...

The salaries paid in 2004 is Rs.500000; salaries outstanding Rs.20000; salaries paid in advance for 2001 is Rs.30000. What is the actual salary expenditure for 2004?

Explain translation gain and losses handled in different way, How are trans...

How are translation gains and losses handled in a different way as per to the current rate method in comparison to the other three techniques, which is the current/noncurrent metho

Write Your Message!

Captcha
Free Assignment Quote

Assured A++ Grade

Get guaranteed satisfaction & time on delivery in every assignment order you paid with us! We ensure premium quality solution document along with free turntin report!

All rights reserved! Copyrights ©2019-2020 ExpertsMind IT Educational Pvt Ltd