Answer:
costs that have been incurred and cannot be reversed.
Explanation:
Sunk cost can be defined as a cost or an amount of money that has been spent on something in the past and as such cannot be recovered. Thus, because a sunk cost has been incurred by an individual or organization it can't be recovered and as such it is irrelevant in the decision-making process such as investments, projects etc.
Basically, sunk costs are referred to as fixed costs.
Sunk costs are the opposite of relevant costs because they can't be changed or recovered, as they've been spent or contracted in the past already. Hence, relevant cost are relevant for decision-making purposes but not sunk costs.
Hence, sunk costs are costs that have been incurred and cannot be reversed.
For example, ABC investors decide to acquire land and develop residential houses at a location X. This decision is informed on the fact that the government had recently enacted a policy that led to an increase in demand for residential properties in that location. 6 months into construction of the residential houses, the government reviews and rescinds the policy. This leads to a sharp decline in property values in location X. ABC investors had already incurred 10 million dollars in the project. The 10 million dollars is considered sunk cost.
Answer:
$45 million
Explanation:
Data provided in the question:
Book value of assets = $940 million
Market value of assets = $985 million
Book value of liabilities = $900 million
Market value of liabilities = $930 million
off-balance-sheet assets = $150 million
Off-balance-sheet liabilities = $160 million
Now,
Stockholders Net worth
= Market value of assets + Off balance sheet assets - Market value of liabilities - Off balance sheet liabilities
= $985 million + $150 million - $930 million - $160 million
= $45 million
Answer:sorry man, don’t know
Explanation:
Answer: $8,009.3
Explanation:
Given that,
Deposits(P) = $100 today (Annuity amount)
Additional deposits = $100 end of each quarter for the next 13 years
nominal annual rate = 6% compounded annually
= 0.015
No. of deposits (n) = 53
Payments are made at end of quarter. So future Value of annuity formula will become applicable.
Future value of annuity due = 
= 
= 100 × 80.09
= $8,009.3
Therefore, she will have $8009.38 for her trip.
