Week 6 Cash Flow Estimation 2 - international customer Upon...

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Sunk costs are costs that have already occurred and cannot be recovered. If I understand our reading properly, the following would be an example of a sunk cost in my industry. If we were trying to expand internationally and we decided we wanted to move into a specific country. In preparation we would do market research to see if there is a probable profitability and our marketing folks may even begin to explore how they would market our product to an
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Unformatted text preview: international customer. Upon making final preparations we find out that country may not allow us to recruit online students. All the time and energy spent on the market research may have to be refocused on only on site customers to see if it can still be profitable. The time and resources spent on developing an online strategy would be considered a sunk cost....
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