Last week I explained opportunity costs. Let’s take a look at another cost, called a sunk cost. We’ll take the same example as before. You are self employed and have booked a two week cruise at a cost of R80 000 plus airfare of R10 000. Just before your holiday is about to start, you get an offer to present a series of seminars on the health benefits of gluten free food products, which is what your company makes and sells. The organisers, Discovery Ltd, will pay you R120 000 for the seminars, plus you reckon…
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