Money already spent that cannot be recovered, regardless of future decisions.
Rational decisions ignore sunk costs and look only at future costs and benefits — the classic trap is throwing more money at a failing investment “to not waste what’s already in it.” What’s spent is spent; decide based on what’s ahead.
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FAQ
What is Sunk Cost in simple terms?
Rational decisions ignore sunk costs and look only at future costs and benefits — the classic trap is throwing more money at a failing investment “to not waste what’s already in it.” What’s spent is spent; decide based on what’s ahead.