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
Outer Space
Charles Darwin may be dead and gone but a recent write-in campaign has pitted him against Republican
Martin Van Buren, sitting uncomfortably for this engraving, would eventually ascend to the presidenc
A commercial eyewash station. In a medical office, the eyewash station is likely to be attached to a
Two stubby screwdrivers used to access screws that have limited space above. A straight blade is on ...
Basic massage practice office area.