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In CFA book Corp Fin, Page 79, EOC Q25,
Correct or not -
It says the land and building were purchased five years ago for $10 million. This is the amount that should now be included in the fixed capital investment.
My answer was yes. Because, if they do not use for this project, they could have used for some thing else. But the answer was sunk cost and NO.
I did a similar problem in Schweser and they said it is not sunk cost.
Any thoughts. Any one who did EOC for Corp Fin is really great. It is taking fricking so long to do those. I hope, they better give one of these questions. |
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