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Can someone explain to me what Sunk Costs are? Maubossin wrote here: that the components of Invested Capital, as used in calculating ROIC, are but a collection of Sunk Costs. Greenblatt's notion of Capital is much narrower: Net Working Capital plus Net Fixed Assets. Maubossin gives a rather convoluted approach to this issue. How would (Invested) Capital be defined if one wished to exclude Sunk Costs from the calculation?
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