A corporate manager decides to build a new store on a lot owned by the corporation that could be
sold to a local developer for $250,000. The lot was purchased for $50,000 twenty years ago. When
determining the value of the new store project,
A) the opportunity cost of the lot is $250,000 and should be included in calculating the value of
the project.
B) the cost of the lot for valuation purposes is $50,000 because land does not depreciate.
C) the incremental cash flow should be the $50,000 original cost less accumulated amortization.
D) the cost of the lot is zero since the corporation already owns it.
A
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A licensee is helping her buyer purchase some property. The buyer would like to make an offer on a corner lot that may have once been used as a storage site for a heating oil company. The Licensee should advise her uyer to:
A. consult with an environmental expert b. request a spot zone C. seek tentative approval from the Environmental Proptection Agency D. use a condemnation clause in the offer
If the primal problem has three constraints, then the corresponding dual problem will have three ________
Fill in the blank with correct word.