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24 August, 14:01

The project will require an initial investment of $20,000, but the project will also be using a company-owned truck that is not currently being used. This truck could be sold for $14,000, after taxes, if the project is rejected. What should Black Sheep Broadcasting do to take this information into account

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  1. 24 August, 14:16
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    Answer and Explanation:

    Given that

    Initial investment = $20,000

    Sale value of the truck = $14,000

    Based on the information given, the amount of initial investment should be increased by sale value of the truck i. e $14,000 as it denotes the opportunity cost i. e to be lost not the sunk cost

    Therefore, in this case the amount of the initial investment should be increased by $14,000
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