Share
Explore BrainMass

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

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.

Solution Preview

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 ...

Solution Summary

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

$2.19