Question
The AKLYA.CA sports club is considering launching a new project to train young women's indoor soccer players. This project will require, among other infrastructures, the
The AKLYA.CA sports club is considering launching a new project to train young women's indoor soccer players. This project will require, among other infrastructures, the use of a room that the club owns and that is currently rented to another company for $20,000 per year. This rent is supposed to increase by 2% per year.
Which of the following is correct?
a) This rent is an opportunity cost that should be considered when evaluating the project
b) This rent is a cost/revenue already incurred/received that should not be considered when evaluating the project
c) This rent is a fixed cost/income that should be considered in the evaluation of the project
d) This rent is a variable cost/income to be considered in the evaluation of the project
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