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Suppose Target expects to spend $2 million upfront to inventory to stock the Gopher Place site, and expects to recover $1 million of that inventory

Suppose Target expects to spend $2 million upfront to inventory to stock the Gopher Place site, and expects to recover $1 million of that inventory value at the end of the project life. This is an example of _______ cost that is included in the project _____.

A. working capital, sunk cost

B. working capital, terminal value

C. depreciation, cash flows

D. depreciation, initial investment

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