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A Real Estate Company Started the Exploration of Buying a Piece

Question 1

Multiple Choice

A real estate company started the exploration of buying a piece of land for condos.The company bought the land and started breaking ground.The housing market crashed,and the amount spent may not be recovered completely.What do we call the costs involved with the development of the land?


A) An opportunity cost.
B) A sunk cost.
C) An incremental cost
D) A financing cost

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