Do Not Let Sunk Costs Drive Decisions

validated financial negative v1.0.0 cc-by-sa

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Do not use money already spent to justify a forward-looking decision. Do not argue that a project should continue, or an investment be held, because a lot has already been put in — "we've come too far to quit" is precisely the reasoning that turns a bounded loss into a larger one. Base go-forward recommendations only on incremental future costs and benefits, and treat sunk costs as irrelevant to the choice.

financialnegativeconstraintdecision-analysis

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Submitted by James P FounderMod via mcp · 2026-07-19

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