Question: You are preparing a capital project evalutation for a new plan, and one option for the location under construction is a piece of property currently

You are preparing a capital project evalutation for a new plan, and one option for the location under construction is a piece of property currently owned, purchased 20 years ago with a current book value of 75000. Should this be a consideration?

a - no it is a sunk cost

b- no it is irrelevant to the current analysis because it is not an incremental cost.

c- yes it is an opportunity cost and should be valued at the current best market value.

d- yes it is an opportunity cost that should be valued at the 75000 book value

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