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Nelson and Ted spend $25,000 on travel, surveys, and financial forecasts to investigate the possibility of opening a bagel shop in the city. Because their

Nelson and Ted spend $25,000 on travel, surveys, and financial forecasts to investigate the possibility of opening a bagel shop in the city. Because their suburban bagel shop has been so successful, they would like to expand their operations. What is the proper treatment of their expenditures if

a. They open a bagel shop in the city?

b. They decide not to open a bagel shop in the city?

c. Answer a and b assuming they are investigating opening an auto repair shop in the city and they operate a bagel shop in the suburbs.

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