Sunk costs

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Sunk costs

Shop Sunk Costs Back-to-back record flooding along the Brazos River has forced people in Richmond to make an excruciating choice: Mon, Dec 4, at 9: But drive less than a half mile away, turn left off Alternate Highway 90 onto Sunk costs Drive, and things start to look different.

The first sign is the dried, cracked mud that still coats the road as it slopes down toward the banks of the Brazos River.

Several of the 50 or so trailers have red tags hanging from their front doors, marking them as unsafe to enter. Edgewood flooded gradually in the days after Hurricane Harvey made landfall on August 25, as the Brazos bloated with more than 30 inches of rain.

Residents watched calmly from lawn chairs as the water crept up inch by inch, swamping their homes in a slow-motion disaster. At least 7, homes and buildings flooded across Fort Bend County. Many people here had barely dried up from the previous record flood — in That year, the Brazos crested at 54 feet; Harvey topped that with 55 feet of flooding.

And there was another significant flood in Indeed, from May to Junethe river saw four of the 10 highest crests ever recorded in Richmond. A home damaged by the flooding in the Edgewood Trailer Park in Richmond.

It never crossed my mind that another flood would come again so soon.

Sunk costs

He and his wife, Maria, built their three-bedroom home themselves in But as climate change makes extreme weather events more common, this town of 12, a half hour southwest of Houston may provide a distinct object lesson. In Richmond, those unlucky enough to have flooded twice must decide whether to move to higher ground and leave behind their close-knit community, or stay put and risk losing everything a third time.

A large fountain welcomes residents to this master-planned community, which was built in and has more than homes. With its quaint downtown and small-town feel a short drive from central Houston, Richmond seemed like the best of both worlds.

Here, everybody knows everybody. Either Jessica or Linsey stops by every day to check on the progress — a routine that feels almost normal at this point, they say, since their house flooded in and again during Harvey.

They were among 36 families whose homes flooded in their subdivision the first year; this year, did. Jessica remembered to save memorabilia first, since that was what she most regretted losing in the flood.

Sunk costs

Still, they took a five-figure financial hit. And their credit score is still recovering from when they were late paying the mortgage in the chaos of the flood. And Jessica, who works as a realtor, is betting their property value will eventually rebound.

What is 'Sunk Cost'

So we feel invested. But flood maps are often wrong, and rising temperatures are making severe storms more common. Warmer ocean waters feed hurricanes; a hotter atmosphere can produce heavier rainfall. Houston has seen five year floods sinceand the number of heavy downpours over the city has increased percent since the s.

Immediately after both floods, days before the Red Cross showed up, their neighbors organized an impromptu army of volunteers. Church groups showed up from across the state to help clear debris, cook meals and tear out Sheetrock.

Wyatt Sebesta, who lives on Riveredge Drive about 2 miles from the Calkins, sees it differently. I about worked myself to death. Since being laid off eight months ago, Sebesta now has ample time to work on repairs — and to rail against the city of Richmond and FEMA, which he believes are persecuting him.

He leafs through two overstuffed manila folders of flood-related paperwork: That levee was designed to mitigate flooding in nearby neighborhoods, the county jail and other previously unprotected areas, the Houston Chronicle reported at the time.

Sebesta thinks it diverted floodwaters to his neighborhood. InFEMA updated its flood maps, and Riveredge Drive moved from the year floodplain into the floodway — the area of highest risk.

Have you ever fully read the Second Amendment? Just read up on it.Oct 01,  · Best Answer: Sunk costs are costs which cannot be recovered once they have been incurred.

Sunk costs are sometimes contrasted with variable costs, which are the costs that will change due to the proposed course of action, and prospective costs which are costs that will Status: Resolved.

Money already spent and permanently lost. Sunk costs are past opportunity costs that are partially (as salvage, if any) or totally irretrievable and, therefore, should be considered irrelevant to future decision term is from the oil industry where the decision to abandon or operate an oil well is made on the basis of its expected cash flows and not on how much money was spent in.

A sunk cost is a cost that has already been incurred and cannot be recovered. A sunk cost differs from future costs that a business may face, such as decisions about inventory purchase costs or. Oct 29,  · Small business owners take on numerous costs and expenses during the start up and growth phases of their businesses.

In business, you have to . Small business owners take on numerous costs and expenses during the start up and growth phases of their businesses. In business, you have to spend time and money to attract the attention of. The sunk cost fallacy makes you act in ways counter to your best interests.

Learn how to see through these sunk costs and make better decisions.

Letting Go of Sunk Costs | Psychology Today