Suppose you spent $1B on a factory to make blenders + blender marketing + distri... | Hacker News

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		sk5t on Aug 1, 2016 \| parent \| context \| favorite \| on: Uber to Sell China Business to Rival Didi After Lo... Suppose you spent $1B on a factory to make blenders + blender marketing + distribution channels, etc. Later, you invest $200MM in another blender concern for a 20% stake. How do you value / account for the first $1B in sunk costs?

argonaut on Aug 1, 2016 | [–]

You answered your own question? You don't - it's sunk costs.

fgonzag on Aug 3, 2016 | [–]

As a loss obviously, a sunk cost is exactly that: sunk

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