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Diamond Inc., has estimated that a new building will cost $1,000,000 to construct. Land was purchased a year ago for $300,000 and could be sold
Diamond Inc., has estimated that a new building will cost $1,000,000 to construct. Land was purchased a year ago for $300,000 and could be sold today for $400,000. An environmental impact study was performed at a cost of $50,000. For capital budgeting purposes, what is the relevant cost of the new building?
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