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Jason bought a piece of land for $350,000 two years ago. Now, he is evaluating the idea to open an ice cream shop on the
Jason bought a piece of land for $350,000 two years ago. Now, he is evaluating the idea to open an ice cream shop on the land. On the other hand, Jason can earn $120,000 if he decides to sell the land today. Outfitting the space for an ice cream shop would require a capital expenditure of $150,000 today. And, it'll require an initial investment of $30,000 in inventories today. Which of the following is considered as an opportunity cost to open the ice cream shop? the $120,000 that Jason can earn by selling the land the purchase price of $350,000 Jason paid two years ago O the costs for milk, cream, and yogurt that Jason will need to produce ice creams the initial capital expenditure of $150,000 to outfit the ice cream shop Following question 17, what is the cash flow for opening the ice cream shop today? Note: opportunity costs, if any, are part of the cash flow. -$180,000 -$530,000 -$300,000 0-$60,000
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