Sunday, February 10, 2013

An example of a sunk cost in a capital budgeting decision for new equipment is

ACCOUNTING

Multiple Choice

An example of a sunk cost in a capital budgeting decision for new equipment is

a. increase in working capital required by a particular investment choice.

b. the book value of the old equipment.

c. the necessary transportation costs on the new equipment.

d. all of the above are examples of sunk costs.

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