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Land owned by a firm is irrelevant to a capital budgeting decision as it is a sunk cost

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In general, the value of land currently owned by a firm is irrelevant to a capital budgeting decision because the cost of the property is a sunk cost?

a. True.
b. False.

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Solution Summary

The solution provides a background in the capital budgeting process as a method of explaining the response to the statement.

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Capital Budgeting is the process by which the firm decides which long-term investments to make. Capital Budgeting projects, i.e., potential long-term investments, are ...

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