Conceptual Check: Question $2$

Q$2.$ Baldwin Company, a leading producer of tennis balls, baseballs, footballs, and golf balls, is considering to broaden its business to bowling balls. Suppose you are the CEO of Baldwin, and have run a test marketing to collect necessary data for valuation. Now, you would like to decide whether this new bowling business is worthy $($i$.$e$.$ NPV $>0?).$ Which of the following factors are relevant to your decision? $($Choose all that apply.$)$

$($A$)$ Cost of the test marketing before the project starts to collect data on potential demand and price from customers, $$250,000.$ This result of this test provides the necessary data to valuate the bowling business.

$($B$)$ A warehouse that can be used for bowling ball manufacturing, where the land could be sold for $$150,000$ if not used.

$($C$)$ Cost of bowling ball machine, $$100,000.$

$($D$)$ The bowling ball machine could be sold in $$30,000.$