Yanong (june 15) part (b)

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August 1, 2017 at 9:36 am #399789
mansoor
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Good afternoon!

in part b, can u explain why the cash outflows do not include the actual operation costs?

thank u!
August 6, 2017 at 4:29 pm #400756
P2-D2
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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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