Read the paragraph in Appendix A, note 1, under item “3.RATIONALIZATION CHARGES.” The paragraph describes a series of business decisions made by Home Depot to close some of its stores, including 15 underperforming stores, and invest more in their existing stores. Write a short paragraph identifying the type of costs that would be considered incremental, sunk, or opportunity costs for a decision to invest in remodeling (or close) a current store.
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