# Question: Classify each of the following as a sunk cost an

Classify each of the following as a sunk cost, an opportunity cost, or neither.

a. The firm has spent $1 million thus far to develop the next-generation robotic arm; it is now examining whether the project should continue.

b. A piece of ground owned by the firm can be used as the site for a new facility.

c. It is anticipated another $200,000 of R&D spending will be needed to work out the bugs of a new software package.

a. The firm has spent $1 million thus far to develop the next-generation robotic arm; it is now examining whether the project should continue.

b. A piece of ground owned by the firm can be used as the site for a new facility.

c. It is anticipated another $200,000 of R&D spending will be needed to work out the bugs of a new software package.

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