A manufacturing firm is planning on expanding its existing operations. The expan

Question

A manufacturing firm is planning on expanding its existing operations. The expansion project is significant and will require the firm to house the expansion in a different location. The firm is considering building on a lot they own across town. The lot is currently vacant and it was paid for nearly 20 years ago. Given this information, which of the following statements is correct? The lot is not an incremental cash flow because it is not being utilized at this time. The lot is an incremental cash flow because it represents an opportunity cost. The lot is an incremental cash flow because it represents a sunk cost. The lot is not an incremental cash flow because it is not being utilized at this time. The lot is an incremental cash flow because it represents an opportunity cost. The lot is an incremental cash flow because it represents a sunk cost. The lot is not an incremental cash flow because it is not being utilized at this time. The lot is an incremental cash flow because it represents an opportunity cost. The lot is an incremental cash flow because it represents a sunk cost.

Explanation / Answer

The lot is not an incremental cash flow because it is not being utilized at this time.

Related Questions

Navigate

• Browse (All)
• Browse A
• Subjects

---

---

Integrity-first tutoring: explanations and feedback only — we do not complete graded work. Learn more.