What is a sunk cost, Financial Management

Assignment Help:

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

A sunk cost is a cash flow that has already takes placed, or that will take place, whether a project is rejected or accepted.  It is unrelated when evaluating a proposed project. 

 

 


Related Discussions:- What is a sunk cost

Net present Value, Given below are the cash flows of a project. Find out th...

Given below are the cash flows of a project. Find out the net present value of the project. Cost of capital is 18% and initial investment is Rs. 2,00,000. Year Cash Flows (lakhs)

Effective use of focused marketing, a) A niche market refers to a lucrative...

a) A niche market refers to a lucrative and small market segment. Marketing strategy is targeted and concentrated at this specific market segment. Pink Ladies are specifically targ

Margining system, Margining System: Indian capital markets have finally...

Margining System: Indian capital markets have finally acquired an international flavor with the market-wide rolling settlement coming into place on both the premier exchanges (

Agency theory, AGENCY THEORY An agency relationship may be defined as a...

AGENCY THEORY An agency relationship may be defined as a contract under which one or more people (the principals) hire another person (the agent) to perform some services on th

Basic assumptions of cost of capital, Basic Assumptions of Cost of Capital ...

Basic Assumptions of Cost of Capital The Cost of Capital is a dynamic concept affected by a multiplicity of economic and firm factors and assumes the following assumptions rela

Operating cycle, discuss the applicability of an operating cycle to poultry...

discuss the applicability of an operating cycle to poultry business in uganda.

Profit and loss, how is financial management relevant to profit and loss?

how is financial management relevant to profit and loss?

Wha is asset turnover- performance ratios, Wha is Asset turnover- performan...

Wha is Asset turnover- performance ratios Asset turnover = Turnover/ Total assets or capital employed This demonstrates how much sales are generated for every £1 of capit

Types of financial assets, Types of Financial Assets Majority of financ...

Types of Financial Assets Majority of financial assets used worldwide are in the form of deposits, stocks and debt. Deposits Deposits can be made either with banking or

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