Two years ago a large corp. gegan construction on a new site. At that time, mgrs thought that production from that plant would generate over $25 million in sales. However, a more conservative and realistic estimate suggests that the new plant will only generate an additional $20 million in sales. Over the past two years, the corp. has spent $15 million on construction of the plant. Another $10 million is needed to complete the facility. Should the mgrs scrap the project or move forward. Explain

Question

Two years ago a large corp. gegan construction on a new site.  At that time, mgrs thought that production from that plant would generate over $25 million in sales.  However, a more conservative and realistic estimate suggests that the new plant will only generate an additional $20 million in sales.  Over the past two years, the corp. has spent $15 million on construction of the plant.  Another $10 million is needed to complete the facility.  Should the mgrs scrap the project or move forward.  Explain