Which of the following statements best describes a sunk cost?
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A sunk cost is any cost that must be expended in order to complete a project and bring it into operation.
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A sunk cost is any cost that was expended in the past but can be recovered if the firm decides not to go forward with the project.
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A sunk cost is a cash outlay not directly related to the project and can be recovered if the firm decides to go forward with the project.
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A sunk cost is a cost that was incurred and expensed in the past and cannot be recovered in the future regardless of whether or not the project is accepted.