Explain sunk cost and opportunity cost in npv, Financial Management

Assignment Help:

In the NPV analysis, sunk cost is not relevant whereas opportunity cost is for project evaluation.

Requirements:

Explain and justify the above statement about sunk cost and opportunity cost.

Related Discussions:- Explain sunk cost and opportunity cost in npv

Describe the general pattern of cash flows, Describe the general pattern of...

Describe the general pattern of cash flows from a bond with a positive coupon rate. Cash flows from a bond along with a positive coupon rate contain periodic interest payments an

Financial Data and Projections.., I am writing a Marketing Plan for "Advanc...

I am writing a Marketing Plan for "Advanced Reimbursement Solutions, LLC" and need the following information regarding it: Financial Data and Projections: Past sales revenues, Brea

Evaluate certainty equivalent coefficient, Q. Evaluate Certainty Equivalent...

Q. Evaluate Certainty Equivalent Coefficient? Illustration: - Presume the risky cash flow is Rs. 200000 and the riskless cash flow is Rs. 140000. The Certainty Equivalent Co

Portfolio management, Portfolio Management: Project Portfolio Manageme...

Portfolio Management: Project Portfolio Management (PPM) is the centralized management of processes, technologies and methods used by project management offices (PMOs) and pro

Approaches to financial management, mention the advantages and disadvantage...

mention the advantages and disadvantages of the traditional approach

Define the constructive receipt, Q. Define the Constructive Receipt? Co...

Q. Define the Constructive Receipt? Constructive Receipt - A taxpayer is considered to have received income even though monies are not in hand, it may have been set aside or ot

Common-size balance sheet and income statement, The question to be answere...

The question to be answered is : "Since the 1990 opening of stock exchanges, China started to use financial statements to determine the performance of listed companies. What were c

Treasury bonds or t-bonds or the long bond, Treasury bonds are the bo...

Treasury bonds are the bonds issued with maturities greater than 10 years. However, these are commonly issued with a maturity of 30 years. Like T-notes, these bon

Working of australian securities and investment commission, Working of ASIC...

Working of ASIC ASIC as an independent government body enforces and regulates company and financial services laws to protect consumers, investors and creditors. It keeps the pu

Define compensating balances, What are compensating balances and why do ban...

What are compensating balances and why do banks require them from some customers? Under what circumstances would banks be most likely to impose compensating balances? Compensati

Write Your Message!

Name

Email id

Message

Verfication Code

User Account

All Pages