Question

Sunk costs? are not considered when evaluating new proposals. differ among the alternatives. impact the future. are relevant.

Answer 1

The correct answer is “are not considered when evaluating new proposals”.

Sunk costs are sums of money that have already been spent and cannot be recovered. For instance, a manufacturing business may have a range of sunk costs, such as the price of machinery, equipment, and facility lease payments.

Why is it known as a "sunk cost"?

In economics and finance, a cost that has already been incurred and which cannot be recovered is known as a sunk cost. Sunk expenses are viewed as bygone in economic decision-making and are not taken into account when determining whether to continue an investment project.

Why does sunk cost matter?

There is a barrier to entry when an industry has large sunk costs. If a company must invest a significant amount of money, it won't be able to recover.

To know more about Sunk costs, visit: brainly.com/question/20438089

#SPJ4