Question 12

You want to open an indoor rock-climbing gym, but are unsure of whether there is sufficient demand. You hire a marketing research firm for $100K to estimate the demand. The gym will cost $5 million to build and will generate $500K per year for 20 years. You estimate a discount rate of 10% for the gym project.

If you wanted to find the NPV of the gym you ________ include the $100k because it is a/an ___________ cost

Group of answer choices

should NOT; sunk cost

should NOT; opportunity

should; sunk cost

should; opportunity