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ChloroClean is a household products firm that is considering developing a new detergent. In evaluating whether to go ahead with the new detergent project, which
ChloroClean is a household products firm that is considering developing a new detergent. In evaluating whether to go ahead with the new detergent project, which of the following statements is true? O A. If the company plans to produce the detergent in a building the company already owns, then the cost of the building for purposes of this project is zero and should be excluded from the analysis. B. If the company plans to produce the detergent in a building that it renovated 2 years ago for $300,000, then the $300,000 in renovation costs should be excluded from the analysis as a sunk cost. O C. Suppose the company will need to use some equipment that it could have leased to another company. This equipment lease could have generated $200,000 per year in after-tax income. Since the equipment will be used in the detergent project, the $200,000 of lease income will never be realized and should therefore have no impact on the new detergent project analysis. OD. Both a and b are true
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