Sunk costs

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Revision as of 10:30, 27 March 2020 by imported>Doug Williamson (Add link.)
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Project appraisal.

Expenditure which has already taken place, or to which an organisation is already irrevocably committed, are sunk costs.

Sunk costs are irrelevant to project appraisal: "Sunk costs don't count."

A common mistake in project appraisal and analysis is the inclusion - in error - of sunk costs in the analysis.


See also