(Answered) At the moment psc is leasing their harris park wharf

Management Studies

At the moment PSC is leasing their Harris Park wharf facility to an unrelated entity for $85,000 p.a. The introduction of the new ferry will require that PSC use the wharf on a full-time basis. In this case, PSC must terminate the lease agreement. There is debate among the family members if this lease agreement is an example of a sunk cost or not.

Is this an opportunity cost?

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Business Management, Management Studies

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