You inherit land worth $2 million. It will cost you $3 million to build a...
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You inherit land worth $2 million. It will cost you $3 million to build a restaurant on the land. The restaurant is expected to earn $1 million per year for the next 20 years. You estimate a discount rate of 10% for the restaurant project. If you wanted to find the NPV of the restaurant you include the $2 million because it is a/an cost O should NOT: opportunity Oshould NOT; sunk cost should; sunk cost O should; opportunity
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