Question: Please if you can add an excel table with formulas 1. (Sunk costs) We return to the sunk cost example of Section 6.2. You have

Please if you can add an excel table with formulas 1.

Please if you can add an excel table with formulas

1. (Sunk costs) We return to the sunk cost example of Section 6.2. You have invested $100,000 in a badly built house. For $20,000 invested today, you can fix up the house and sell it 1 year from today for $90,000. As an alterna- tive, you can sell the house today for $60,000. a. Should you take into account the $100,000 cost already invested in the house? b. If the relevant discount rate is 9%, which alternative should you prefer? c. What is the discount rate that makes you indifferent between the two alternatives

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