A Corporate Manager Decides to Build a New Store on a Lot

question 61

Multiple Choice

A corporate manager decides to build a new store on a lot owned by the corporation that could be sold to a local developer for $250,000.The lot was purchased for $50,000 twenty years ago.When determining the value of the new store project,

• A) the cost of the lot is zero since the corporation already owns it.
• B) the opportunity cost of the lot is $250,000 and should be included in calculating the value of the project.
• C) the cost of the lot for valuation purposes is $50,000 because land does not depreciate.
• D) the incremental cash flow should be the $50,000 original cost less accumulated amortization.

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Definitions:

Hereditary Material

Genetic information passed down from parents to offspring, primarily contained within DNA.

Recessive Genes

Genetic variants that are expressed in an organism's phenotype only when two copies of the gene are present, but not when a dominant gene is present.

Histones

Proteins found in eukaryotic cell nuclei that package and order the DNA into structural units called nucleosomes, playing a critical role in gene regulation.

Neuroplasticity

The malleability of the human brain, its capacity to change and grow especially in response to new environmental input. Includes the capacity of neurons to shift functions to compensate for damage to other cells or because they have been transplanted to a different part of the brain.