Sunk costs: Difference between revisions
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Sunk costs are irrelevant to project appraisal: "Sunk costs don't count." | 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. | A common mistake in project appraisal and analysis is the inclusion - in error - of sunk costs in the analysis. | ||
Revision as of 14:46, 31 March 2020
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.
