This chapter only have four questions in the bpp book but some of the words seems very unfamiliar to me. I have not watch any lecture that included an explanation on sunk cost and relevant cost nor can i find them in the notes. How do i deal with the questions?
These terms are more relevant to Paper PM than to Paper MA.
Relevant costs are the future extra cash flows resulting from doing a project.
Sunk costs are costs that have already been spent and are therefore irrelevant to the decision.
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