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A sunk cost is irrelevant to a current decision because it

  • A.has not yet been incurred
  • B.will be recovered through depreciation
  • C.was smaller than the amounts now in question
  • D.cannot be changed by any choice now available

Answer: D

Correct answer: cannot be changed by any choice now available

A cost already incurred is identical whichever course is now taken, so it cannot distinguish between the alternatives and must be excluded from both sides. It is not that the money did not matter - only that no decision available now can affect it.

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