Iridium Corp. has spent $ 3.5$3.5 billion over the past decade developing a satellite-based telecommunication system. It is currently trying to decide whether to spend an additional $ 350$350 million on the project. The firm expects that this outlay will finish the project and will generate cash flow of $ 15.0$15.0 million per year over the next 5 years. A competitor has offered $ 450$450 million for the satellites already in orbit. Classify the firm's outlays as sunk costs or opportunity costs , and specify the incremental cash flows.
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Home » Business » Iridium Corp. has spent $ 3.5$3.5 billion over the past decade developing a satellite-based telecommunication system. It is currently trying to decide whether to spend an additional $ 350$350 million on the project.