volume_mute

A project's 'Change Strategy' involves three transition states. Transition 1 provides 10k value, Transition 2 provides 20k, and the Future State provides 100k. If the project is canceled after Transition 2, what is the 'Sunk Cost' if total spend so far was 60k?

publish date: 2026/03/09 07:07:37.768550 UTC

volume_mute

Correct Answer

$60,000

Explanation

Sunk cost is the total amount already spent that cannot be recovered, regardless of the value achieved.

Reference

go-math-science.com

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