Exam – T/F: Sunk Costs and Revenue Projection Analysis in Book Publishing

Fundamentals of Financial Management, Concise

Brigham and Houston

09th Edition, 10th Edition, and 11th Edition

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True or false: Suppose ABC company is contemplating the release of a new accounting textbook, with projected revenues that may include some sales diverted from another existing book by ABC. The foregone sales on the older book should be treated as a sunk cost and, therefore, excluded from the analysis for the new book.

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