A corporate manager decides to build a new store on a lot owned by the corporation that could be
sold to a local developer for $250,000. The lot was purchased for $50,000 twenty years ago. When
determining the value of the new store project,
A) the opportunity cost of the lot is $250,000 and should be included in calculating the value of
the project.
B) the cost of the lot for valuation purposes is $50,000 because land does not depreciate.
C) the incremental cash flow should be the $50,000 original cost less accumulated amortization.
D) the cost of the lot is zero since the corporation already owns it.
A
You might also like to view...
_____ pricing objectives are used to keep competitors out of a foreign market.
Fill in the blumk(s) with the appropriat word (s)
______ supported the renovation of the Statue of Liberty by contributing a penny to the campaign each time a consumer used the company’s credit card.
A. Visa B. Discover C. Mastercard D. American Express
The transfer of a held-to-maturity investment in debt securities to either trading securities or securities available-for-sale would call into question the original designation of that investment
Indicate whether the statement is true or false
A "manufacturing cell" is defined as:
A) grouping of all the machinery and equipment that are needed to make a product being available in one area of the factory. B) restructuring of the factory so that the companies are able to manufacture products quickly. C) an area in the warehouse where similar raw materials are grouped together. D) grouping of all the factories that are engaged in manufacturing similar products.