Sunk costs are relevant in capital budgeting analysis and should be considered in calculating a project's initial investment.

Name: Sunk costs are relevant in capital budgeting analysis and should be considered in calculating a project's initial investment.
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Sunk costs are costs that have already been incurred and cannot be recovered, so they are not relevant in capital budgeting analysis and should not be considered in calculating a project's initial investment.

Sunk Costs Are Relevant in Capital Budgeting Analysis and Should