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Yanong (june 15) part (b)

Mmansoor9y ago
Good afternoon! in part b, can u explain why the cash outflows do not include the actual operation costs? thank u!
P2-D2P2-D2Tutor9y ago#1
Hi, If you are referring to the $10 million operating costs then they have already been incurred and are no future cash flows. They are effectively like a sunk cost. Thanks
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