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Opportunity cost. Revolution Records will build a new recording studio on a vacant lot next to the operations center. The land was purchased five yours

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Opportunity cost. Revolution Records will build a new recording studio on a vacant lot next to the operations center. The land was purchased five yours ago for $400,000 Today, the value of the land has appreciated to $730,000 Revolution Records did not consider the value of the land in its NPV calculations for the studio project (it had already spent the money to acquire the land long before this project was considered) The NPV of the recording studio is $570,000 Should Revolution Records have considered the land as part of the cash flow of the recording Studio? If yes, what value should be used $400,000 or $730,000? How will the value illoch the project? Should Revolution Records have considered the land as part of the cash few of the recording studio? (Select the best response) O A Yes OB. No What value should be used $400,000 of 5730,000? (Select the best response) O A S730,000 OB. $400,000 O C30 How will the value affect the project? (Select the best rosponse) O A The value of the fond does not affect the project of all OB: it the NPV without comdoning this cool 5570,000 for the studio then Revolution Records could just sell to tand and have 5730,000 as cash income

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