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Choose a decision date
Suppose a feasibility study cost 30 before today and cannot be recovered under either choice. Today’s decision compares additional investment with the alternative of not continuing. The earlier 30 has the same effect in both branches of that forward comparison.
Identify what is still changed by the choice
A future cancellation fee, resale opportunity or refundable deposit can differ between branches. Such an amount is not excluded merely because it relates to an earlier activity. Describe whether the amount is actually recoverable and when the alternatives change it.
Keep historical accountability separate
| Question | Treatment of the old study cost |
|---|---|
| What is the incremental value of continuing today? | Unrecoverable equal-branch cost cancels |
| How did the complete historical initiative perform? | Prior spending can belong in the historical record |
Retain the baseline in the model notes
Calling a cost sunk is a claim about timing and alternatives. Write those facts so another analyst can check them. Do not use the label as a shortcut to remove future amounts that remain contingent on the decision.