an investment project would make use of land which the firm currently owns, the project should be charged with the opportunity cost of the land.

Question

Quizplus · Accepted Answer

The opportunity cost of using the land for the investment project is the value of the best alternative use of the land. Therefore, the project should be charged with the opportunity cost of the land to accurately reflect the cost of the investment decision.

An Investment Project Would Make Use of Land Which the Firm