A company is thinking about expanding their business by opening another shop on property they purchased for cash 10 years ago. Which of the following items should be included in the analysis of this project? (Answer with a Yes or No.) And why? (Just a bullet point answer is needed. )

A) The property was cleared of trees and brush 5 years ago at a cost of $5,000.

B) The new shop is expected to affect the profitability of the existing shop since some current customers will transfer their business to the new shop. The company estimates that profits at the existing shop will decrease by 10 percent.

C) The company can lease the entire property to another company (that wants to grow flowers on the lot) for $5,000 per year.

D) The company needs to purchase inventory to stock the shop prior to its opening.

Answers: Yes or No. Why?

A)

B)

C)

D)