Answer:
$4.50
Explanation:
The sunk cost is the cost that has been incurred and is unrecoverable in the process of taking a financing decision.
If the cost of a coffee cup from a local gas station cost $5.00 and the cost of refill is $0.50, the coffee is the actual element needed and from the refill, it can be estimated that it costs $0.50.
Hence the sunk or unrecoverable cost is the difference between the coffee cup and the refill cost
= $5.00 - $0.50
= $4.50
