A firm is deciding whether or not to complete the building of a new office.
Given the following data, what is the relevant cost of building an office building?
1. $10 million has been spent to date.
II. The partially completed building and land can be sold for $4 million.
III. Additional labor and material necessary to complete the office building costs $5 million.

Question

05-09-2021
Business

Answered

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A firm is deciding whether or not to complete the building of a new office.
Given the following data, what is the relevant cost of building an office building?
1. $10 million has been spent to date.
II. The partially completed building and land can be sold for $4 million.
III. Additional labor and material necessary to complete the office building costs $5 million.

Sagot :

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