S1U1B1 S1U1B0John invested $12,000 in the stock of Hyper Cyber.Eight years later,Hyper Cyber’s shares reached $125,000,but John held onto the shares in the belief that their price would double in the next five years.Unfortunately,Hyper Cyber did not double.Instead,the market value of John’s shares today is $4,000.If the shares were sold and the proceeds invested in another investment,they would likely earn 5% per annum.Which of the following terms and values is correct?

$12,000 is a sunk cost

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