Chapter 10 Cost Benefit Analysis (Task 5)

Question 1

Sunk Cost

Answer 1

A sunk cost is a cost which has already been spent so therefore not included in the cost benefit analysis as if you pick or not pick the project, the cost has already been incurred

Question 2

Intangible meaning

Answer 2

Intangible items can be difficult to measure the value that gets added or the cost that gets incurred