When you are evaluating a potential investment how important

When you are evaluating a potential investment, how important is it to know how much your money is costing you? Why?

Solution

When evaluating a potential investment it is important to know whether the cost can be recovered and that the investment in profitable. Unless one determines the cost and the subsequential inflows, one will not be able to determine whether the invetment is profitable. So the cost is an important factor in determing whether an investment should be taken or not.