Warehouse in new project, Acme Manufacturing owns a

Warehouse in new project

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Reference no: EM133863358

Question

Acme Manufacturing owns a warehouse that it is not currently using. It could sell the warehouse for $300,000 or use the warehouse in a new project. Should Acme Manufacturing include the value of the warehouse as part of the initial investment in the new project? Yes, because the firm could sell the warehouse if it didn't use it for the new project. No, because the cost of the warehouse is a sunk cost. No, because the company will still be able to sell the warehouse once the project is complete.

Reference no: EM133863358

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