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You decide to build a hot dog stand on land that you have recently inherited on Times Square. The NPV of the cash flows from
You decide to build a hot dog stand on land that you have recently inherited on Times Square. The NPV of the cash flows from the hot dog stand itself is $50,000, but by opening the stand, you lose the ability to sell the land for $2 million. When you decide whether to build the stand, what should you use as the NPV of the project, and what should you decide? O No. NPV is -$1,950,000. No, NPV is -$50,000. Yes, NPV is $1,950,000. Yes, NPV is $50,000
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