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2. The Houndstooth Inn invested in a ten-acre plot of land for future development twenty years ago. It purchased this land for $100,000 and it
2. The Houndstooth Inn invested in a ten-acre plot of land for future development twenty years ago. It purchased this land for $100,000 and it could be sold for $500,000. The Houndstooth Inns average and incremental tax rate are 22 and 30 percent, respectively. The Inn is considering building a new lodging facility on this land. What is the opportunity cost of this investment?
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