Question: ABC is evaluating a project that has relevant variable costs of $ 1 1 2 , 0 0 0 . In addition, there is one

ABC is evaluating a project that has relevant variable costs of $112,000. In addition, there is one source of fixed costs associated with the project. Yesterday, ABC signed a deal with XYZ Design to develop an advertising campaign for the project.The terms of the deal require ABC to pay $88,000 to XYZ Design in 1year. What is the relevantcost figure for year 1that ABC should use in its NPV analysis of project?

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