Your firm purchased land last year for $1.2 million. At that time, the company spent $50,000 in legal fees to have the land rezoned for commercial use and another $175,000 to have the land graded so that it is usable. You are now trying to decide whether to build one large retail store on the property or a strip mall consisting of smaller stores. Which of the costs identified above should be included in the project analysis to determine the best use of the property? 

 All of the identified costs should be included in the capital budgeting analysis 

Only the cost of the land and the grading 

Only the legal fees and the grading costs

None of the identified costs should be included in the capital budgeting analysis

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