You have been invited by friends to fly to Germany for Octoberfest next year. For international travel, you apply for a passport that costs $97 and is validfor 10 years. After you receive your passport, your travel companions decide to cancel the trip because of “insufficient funds.” You decide to also cancel your travel plans because traveling alone is no fun. Is your passport expense a sunk cost or an opportunity cost? Explain your answer.
You have been invited by friends to fly to Germany for Octoberfest next year. For international travel, you apply for a passport that costs $97 and is validfor 10 years. After you receive your passport, your travel companions decide to cancel the trip because of “insufficient funds.” You decide to also cancel your travel plans because traveling alone is no fun. Is your passport expense a sunk cost or an opportunity cost? Explain your answer.
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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You have been invited by friends to fly to Germany for Octoberfest next year. For international travel, you apply for a passport that costs $97 and is valid
for 10 years. After you receive your passport, your travel companions decide to cancel the trip because of “insufficient funds.” You decide to also cancel your travel plans because traveling alone is no fun. Is your passport expense a sunk cost or an opportunity cost? Explain your answer.
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