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Anna35 [415]
3 years ago
9

Valley Forge and Metal purchased a truck five years ago for local deliveries. Which one of the following costs related to this t

ruck is the best example of a sunk cost? Assume the truck has a usable life of five years. a. New tires that will be purchased this winter.b. Costs of repairs needed so the truck can pass inspection next month.c. Money spent last month repairing a damaged front fender.d. Engine tune-up that is scheduled for this afternoon.e. Cost for a truck driver for the remainder of the truck's useful life.
Business
1 answer:
Gnesinka [82]3 years ago
4 0

Answer: Option (c) is correct.

Explanation:

Correct option(c): Money spent last month repairing a damaged front fender.

This is the best example of sunk cost.

Sunk costs refers to the cost that is incurred in the past and this cost cannot be recovered. This demonstrate that sunk costs should not be included in the decision making of any future projects, and this is due to the cost that cannot vary whether the project has been undertaken or not.

All the other options in the question representing the future costs.

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Which action would a government most likely take to reduce its
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A; sounds like the best option
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3 years ago
Parc hired Glaze to remodel and furnish an office suite. Glaze submitted plans that Parc approved. After completing all the nece
seraphim [82]

Answer:

From the information given about the contract and its execution between the two parties involved( That is, Parc and Glaze), the option 2 is most likely.

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Explanation:

It is stated that Glaze was hired to remodel and furnish an office suite, after a submitted plans by Glaze were approved by Parc. It was further stated that the construction and painting had been done.

Although, with Glaze purchasing minor accessories which Parc rejected because they did not conform to the plans is a breach of contract, but that can be corrected by calling Glaze to order. However, it was Parc that refused to allow Glaze to make necessary corretion and complete the project and also refused to pay Glaze any part of the contract price.

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3 years ago
Which monarch prepares a speech which is broadcasted on Christmas Day?
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3 years ago
Consider the following two mutually exclusive projects: Year Cash Flow (A) Cash Flow (B) 0 –$218,917 –$16,419 1 25,700 5,985 2 5
Kryger [21]

Answer:

The IRR (in %) for Project A is 31%.

Explanation:

Let IRR be x%

At IRR, present value of inflows = present value of outflows.  

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