Q37. A company is considering the development of land acquired as an investment more than ten years ago. If developed, the property would then be used as an additional warehouse facility by the company. The company originally paid $400,000 for the undeveloped land and the company estimates the cost to develop the land for use as a warehouse to be $250,000. Alternatively, the undeveloped land could be sold today for $600,000. To determine the warehouse facility's net present value, which of the following is the most appropriate treatment of the land’s;
| $400,000 original cost? | $600,000 market value? | A | Sunk cost | Sunk cost | B | Sunk cost | Opportunity cost | C | Opportunity cost | Sunk cost | D | Opportunity cost | Opportunity cost |
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发表于 2007-10-26 09:04
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