2.Which of the following are sunk costs for deciding whether to accept or reject a project? i.Payments for maintenance of a factory that would need to be made if the project is accepted. ii.The salaries of employees that would need to be hired to execute the new project. iii.Payments that were made to an economist to generate economic forecasts that were used when deciding whether to accept or reject the project. iv.The additional tax expenses that are expected to result from the profits of the new project. a.iii and iv, but not i or ii b.ii and iii, but not i or iv c.iii only d.iv only
2.Which of the following are sunk costs for deciding whether to accept or reject a project? i.Payments for maintenance of a factory that would need to be made if the project is accepted. ii.The salaries of employees that would need to be hired to execute the new project. iii.Payments that were made to an economist to generate economic forecasts that were used when deciding whether to accept or reject the project. iv.The additional tax expenses that are expected to result from the profits of the new project. a.iii and iv, but not i or ii b.ii and iii, but not i or iv c.iii only d.iv only
Essentials Of Investments
11th Edition
ISBN:9781260013924
Author:Bodie, Zvi, Kane, Alex, MARCUS, Alan J.
Publisher:Bodie, Zvi, Kane, Alex, MARCUS, Alan J.
Chapter1: Investments: Background And Issues
Section: Chapter Questions
Problem 1PS
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2.Which of the following are sunk costs for deciding whether to accept or reject a project?
i.Payments for maintenance of a factory that would need to be made if the project is accepted.
ii.The salaries of employees that would need to be hired to execute the new project.
iii.Payments that were made to an economist to generate economic
iv.The additional tax expenses that are expected to result from the profits of the new project.
a.iii and iv, but not i or ii
b.ii and iii, but not i or iv
c.iii only
d.iv only
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