Sunk costs

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Revision as of 08:18, 20 August 2013 by imported>Doug Williamson (Spacing 20/8/13)
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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