Question

Queston 3 You purchased a car for $30,000 nine years ago. You can (but do not have to) sell it today for $5,000. You could (out do not have to) purchase a very similar new car for $40,000. What is the sunk cost? Not yet Points out o 1.00 Select one O a. $30,000 O b. $40,000 O c. $25,000 O d. S5,000 O eS35,000 Feg Questian 4 If the direct cost of a piece of equipment, such as a pump, may have economy of scale, which type of cost estimating model would be the most appropriate? Not yet Points out o 1.00 Select one a. Gradienttime series Fag O b. Incremental cost model ° C. Variable annuity with balloon payment O d. Power-sizing model O e. Fixed operating cost

Answer 1

Answer :

Question 3) Option C:$25000

A sunk cost is a cost that has already been incurred and cannot be recovered. Since we have spent $30000 and only getting $5000 so sunk cost =30000-5000=$25000