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If a firm has the option of selling some raw land to another firm or utilizing it to build a new factory, then if the firm chose to build the factory how should it handle the lost opportunity to sell the real estate for capital budgeting purposes?

Ignore it.

Include it as an opportunity cost.

Include half of it as additional revenue for the project.

Only include the real estate taxes.

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Financial Management, Finance

Category:- Financial Management
Reference No.:- M92095700

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