A successful sushi chain in Hong Kong spent $500,000 to conduct a study on whether to open a location in the United States. The study showed that the best place for the company to open its first location would be in Chicago. When conducting its capital budgeting analysis, how should the company account for the cost of the study when estimating the amount of the initial investment that the new store will require?
A. The company should include the cost of the study in the amount of the initial investment.
B. The company should ignore the cost of the study
C. The company should include half of the cost of the study in the initial investment.
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