Question: A skilled nursing facility chain is considering building a new facility on a piece of property that it currently owns. The property was purchased five

A skilled nursing facility chain is considering building a new facility on a piece of property that it currently owns. The property was purchased five years ago for $250,000 and could be sold now at a current market value of $100,000. When estimating the cash flows for the new facility, what amount should be included to recognize the opportunity cost of using the land for the proposed project?

A	$0 (the land is a sunk cost)

-$150,000

$250,000

$100,000

-$100,000

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