q17

T.K. Max corporation is planning to open a new store in LA. The company spent $67,000 in market research last year and decided to open the store. The research show that taking this project will add $75,000 to the overall sales of the company sales, while it reduces $20,000 from the sales of the nearby stores. To start the project, the company need to invest in $150,000 fixed capital and $52,000 in NWC. Which of the following statement is correct. the $67,000 is the sunk cost the $20,000 is the erosion cost the $150,000 is the initial cost All of the other options are correct