Question

9. You have spent $12,500 on a project so far. The project is behind schedule and...

9. You have spent $12,500 on a project so far. The project is behind schedule and over budget so the PMO is considering abandoning the project. The original estimate for project costs was $10,000 and the NPV of the 5 year project was expected to be $5,000.

  1. What is the sunk cost of the project? (3 points)

  1. Give three examples of sunk costs which could occur on a project. (3 points)

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