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why are future costs importnant when making an investment decision?

why are future costs importnant when making an investment decision?

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Amount spend in investments are irreversible, we cannot get the amount back. Investment decisions can last for long time, estimating future costs helps a company to decide whether they can fund a project in future without any issues with the funding capital. If they accept a project that requires huge investments in futures and in case if they run out of funds, they might have to close the project in between because of which the company might face severe loses. That is why estimating future costs is important when making investment decisions.

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