Question $1(1$ point$)$

Yellowstone Inc. is currently assessing an investment in a new capital project. One of the costs being reviewed is the use of land that the company currently owns. The land will be used to build a new building if the project goes ahead. The land has a book value of $$670,000$ but could be sold today for $$1,300,000.$ Which of the following types of costs best describes the nature of the land cost as it relates to this project?

a$)$ Sunk cost

b$)$ Opportunity cost

c$)$ Operating cost

d$)$ Undepreciated capital cost