hard20 pts · first answer countsbusiness-casegovernance

Sunk cost and stopping

A project has spent $2 million of its $2.5 million budget. New forecasts show it needs another $1.2 million to finish, while the remaining benefits are now only $0.8 million. What should you recommend?

A.Continue, because 80% of the budget is already spentB.Continue, but hide the new forecast until go-liveC.Cut testing to bring the cost below the benefitD.Recommend stopping or reshaping the project, because the decision should compare future costs with future benefits, not money already spent

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Sunk cost and stopping

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