Due to Rapid Growth, a Computer Superstore Is Contemplating Expanding

question 89

Multiple Choice

Due to rapid growth, a computer superstore is contemplating expanding by adding another location. Which of the following items should the financial officer NOT include in estimating the cash flow associated with this expansion?

• A)The company owns the land of the future site of the new location.
• B)The new location is expected to take sales away from the existing location.
• C)The company spent $100,000 six months ago in a major advertising campaign that will help the new store become profitable sooner.
• D)All of the items should be included in the analysis.