What is the relevant cost of the new building

Reference no: EM13280989

Diamond Inc. has estimated that a new building will cost $2,500,000 to construct. Land was purchased a year ago for $500,000 and could be sold today for $550,000. An environmental impact study required by the state was performed at a cost of $48,000. For capital budgeting purposes, what is the relevant cost of the new building?

Answer

$2,500,000
$3,048,000
$3,050,000
$3,098,000

Reference no: EM13280989

Questions Cloud

What is the equivalent annual cost of an oven : What is the equivalent annual cost of an oven if the required rate of return is 10 percent? (Round your answer to whole dollars)

Explain the first second and third law of motion : A box is at rest on a horizontal table. Is it because of the first law, second law, and or third law of motion that those two forces are equal

What is the red dirt brewery terminal or horizon value : What percent ownership interest should Roger be willing to give to a venture investor, Syd, for his $500,000 investment?

Explain alcohols undergoes dehydration at the fastest rate : which of the following alcohols undergoes dehydration at the fastest rate on being heated with sulfuric acid? a) 1-Butanol b)2-Methyl-1-butanol c)2-Methyl-2-butanol d)3-Methyl-1-butanol e)3-Methyl-2-butanol

What is the relevant cost of the new building : An environmental impact study required by the state was performed at a cost of $48,000. For capital budgeting purposes, what is the relevant cost of the new building?

Explain the highest rank when precedence is assigned : which group has the highest rank when precedence is assigned according to the Cahn Ingold prelog system

Calculate the constant angular acceleration of the wheel : A rotating wheel requires 3.09-s to rotate through 37.0 revolutions. calculate the constant angular acceleration of the wheel

State organic molecules from lowest to highest boiling point : Rank the following organic molecules from lowest to highest boiling point. Use the letters A, B, C to identify each molecule in the list and use the appropriate symbol to separate substances in the list.

What price change could lead to a margin call : What price change could lead to a margin call ? Under what circumstances could $1,500 be withdrawn from the margin account?

User Account

All Pages