If this is your first visit, be sure to check out the FAQ by clicking the link above. You may have to register before you can post: click the register link above to proceed. To start viewing messages, select the forum that you want to visit from the selection below. |
|
|
Thread Tools | Display Modes |
#13
|
|||
|
|||
New Carriers - Old refurbishments - New Navy Fighters that goFAR - FAST -
----------
In article , Jim Carriere wrote: Another term for that is "sunk costs" (or writeoff), which is not a good analytical justification for continuing with any project. Political justification, certainly, but it is similar psychology to holding on to a bad investment (hoping it will eventually turn around). If a project is a dud, there really is no sense going on with it no matter how much money has been spent or how close it is to being complete. That's not always true. Sunk costs can be an important consideration if the replacement is going to cost more to develop than the existing program will cost to fix. Put it this way--suppose you've sunk $8 billion into a program that will require $4 billion more to fix. But if you determine that any replacement is going to cost you at least $8 billion, then you are better off continuing with the existing program--assuming that you have a reasonable chance of succeeding. Sunk costs can also represent assets, because they bought _something._ Most of that might be blown on salaries, but at least some of it bought hardware. Starting from scratch means junking those assets. Yeah, it's not precise, but sunk costs serve as a crude benchmark for comparison to the costs of starting over. D |
Thread Tools | |
Display Modes | |
|
|
Similar Threads | ||||
Thread | Thread Starter | Forum | Replies | Last Post |
Ultralight Club Bylaws - Warning Long Post | MrHabilis | Home Built | 0 | June 11th 04 05:07 PM |
Mountain flying instruction: McCall, Idaho, Colorado too! | [email protected] | General Aviation | 0 | March 27th 04 12:24 AM |
FA: WEATHER FLYING: A PRACTICAL BOOK ON FLYING | The Ink Company | Aviation Marketplace | 0 | November 5th 03 01:07 AM |
the thrill of flying interview is here! | Dudley Henriques | Piloting | 0 | October 21st 03 07:41 PM |
USAF = US Amphetamine Fools | RT | Military Aviation | 104 | September 25th 03 03:17 PM |