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Search B Disney plans to build a theme park in Brazil, and it owns the land there already. The land is undeveloped and was purchased
Search B Disney plans to build a theme park in Brazil, and it owns the land there already. The land is undeveloped and was purchased several years ago. The land currently can be sold at a price much higher than the purchase price. In assessing the theme park project, how would you estimate the land cost? A. The land cost is zero because it is a sunk cost. B. The land cost is zero because the project does not pay anything for using the land. C. The land cost is a considerable amount because it is an opportunity cost. D. None of the above. should you (8) Two projects have the same NPV of $1 million. The first project needs an initial investment of $20 million, and the second project needs an initial investment of $10 million. Which project choose if they are mutually exclusive? A. The first project B. The second project C. Both projects D. None of the above
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