Valley Forge and Metal purchased a truck five years ago for local deliveries. Which one of the following costs related to this truck is the best example of a sunk cost? Assume the truck has a usable life of eight years.
1. New tires that will be purchased this winter
2. Costs of repairs needed so the truck can pass inspection next month
3. Money spent last month repairing a damaged front fender
4. Engine tune-up that is scheduled for this afternoon
5. Cost for a truck driver for the remainder of the truck's useful life
Answers: 2
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Valley Forge and Metal purchased a truck five years ago for local deliveries. Which one of the follo...
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