Sanford & Son Inc. is thinking about expanding their business by opening another shop on property they purchased 10 years ago. Which of the following items should be included in the analysis of this endeavor?
A) The property was cleared of trees and brush 5 years ago at a cost of $5,000.
B) The new shop is expected to affect the profitability of the existing shop since some current customers will transfer their business to the new shop. Sanford and Son estimate that profits at the existing shop will decrease by 10 percent.
C) Sanford & Son can lease the entire property to another company (that wants to grow flowers on the lot) for $5,000 per year.
D) Both statements b and c should be included in the analysis.
E) All of the statements above should be included in the analysis.
Correct Answer:
Verified
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