a. What is a sunk cost? An opportunity cost? b. Explain what erosion is and why it
Question:
a. What is a sunk cost? An opportunity cost?
b. Explain what erosion is and why it is relevant.
c. Explain why interest paid is not a relevant cash flow for project evaluation.
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a A sunk cost refers to the cost that has already been incurred and cannot be recovered It is a cost that has been spent and will not change regardles...View the full answer
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Related Book For 
Fundamentals of corporate finance
ISBN: 978-0073382395
9th edition
Authors: Stephen Ross, Randolph Westerfield, Bradford Jordan
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