Author Question: A company is expanding and has already signed a lease on new office space that costs 10,000 per ... (Read 58 times)

sjones

  • Hero Member
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  • Posts: 520
A company is expanding and has already signed a lease on new office space that costs 10,000 per
  month. The company also needs a new information system and hired a consultant to recommend
  new software.
 
  The consultant was paid 5,000 for her recommendation. Now the company is trying
  to make a choice between three competing software products. In the capital budgeting decision to
  purchase new software, the monthly rent for the office space is ________ and the consultant's fee is
  ________.
  A) a sunk cost; a sunk cost
  B) a sunk cost; a part of the initial outlay
  C) an opportunity cost; a sunk cost
  D) incremental cash outflow; an opportunity cost

Question 2

Wall Street Week is a weekly publication of the editors of The Wall Street Journal.
 
  Indicate whether the statement is true or false


ricroger

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  • Posts: 352
Answer to Question 1

A

Answer to Question 2

FALSE



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