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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

by sk5t 10y ago

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 10y ago
You answered your own question? You don't - it's sunk costs.
fgonzag 10y ago
As a loss obviously, a sunk cost is exactly that: sunk