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An increase in the value of a sunk cost should have which effect on investment appraisal calculations?

Question: An increase in the value of a sunk cost should have which effect on investment appraisal calculations?
  • A. Lengthen the payback period
  • B. Reduce the NPV
  • C. Increase the NPV
  • D. Have no effect βœ“
Correct Answer: D. Have no effect

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