Beckingham Sports is an American sporting goods company. Based on $400,000 spent on market research and $600,000 spent on consulting prior to the project, the firm can increase its annual operating cash flow by $3,000,000 if they begin selling overseas. While the firm was thinking about the expansion, it spent $2,000,000 to purchase land for a new factory. However, someone is making an offer to pay Beckingham Sports $3,000,000 for the purchased land meant for a new factory.

Which of the following is the relevant to include capital budgeting?

• $400,000 for the market study
• $600,000 for the consulting
• $2,000,000 to purchase the new land
• $3,000,000 of the offer price of the land.
• None of the above.
  
  

Answer rating: 100% (QA)

3000000 of the offer price of the land ... View the full answer