Rick Bardles and Ed James are considering building a new bottling plant to meet expected future demand for their new line of tropical coolers. They are considering putting it on a plot of land they have owned for three years. They are analyzing the idea and comparing it to some others. Bardles says, “Ed, when we do this analysis, we should put in an amount for the cost of the land equal to what we paid for it. After all, it did cost us a pretty penny.” James retorts, “No, I don’t care how much it cost—we have already paid for it. It is what they call a sunk cost. The cost of the land shouldn’t be considered.” What would you say to Bardles and James?