A company owns a building that is totally paid for. This building has been sitting idle for the past three years. Now the company is trying to analyze a project that would include the use of this building. Therefore, the current market value of the building should be included in that analysis.

Question

Quizplus · Accepted Answer

The current market value of the building should be considered as an opportunity cost in the project analysis, as it represents the value the company could realize if it chose to sell or rent the building instead of using it for the project.

A Company Owns a Building That Is Totally Paid For This