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    The Rationale for Not Including Sunk Costs in Capital Budgeting
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The Rationale for Not Including Sunk Costs in Capital Budgeting

Question 91

Question 91

Multiple Choice

The rationale for not including sunk costs in capital budgeting decisions is that they:


A) are usually small in magnitude.
B) revert at the end of the investment.
C) have no incremental effect.
D) reduce the estimated NPV.

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