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Sunk Cost vs the Next Product Investment

A short software company decision problem. Use the supplied facts, commit to one action, then check your reasoning. Fictional practice; no leaderboard score is recorded.

Software company · sunk cost

You have spent $1.8M and two years on a product. It has 40 customers, growth is flat, and finishing the roadmap would cost another $900,000. The same $900,000 spent on your profitable core product is expected to return roughly $2.5M.

Given factScenario data
Past product investment$1.8M and 2 years
Customers40; growth flat
Remaining roadmap cost$900,000
Alternative core investment$900,000
Expected core returnAbout $2.5M
What should you do?

Choose an action, then lock it in to reveal the reasoning. This is untimed practice.

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