When Considering Which Values to Use in Investment Appraisal,only "Relevant

question 3

Multiple Choice

When considering which values to use in Investment Appraisal,only "Relevant Costs" are used.
A company has identified the following costs involved in a project:
(i) Project Manager salary £30,000.The Project Manager is currently an accountant paid £28,000 - when the project starts,a new accountant will be employed at a cost of £20,000.
(ii) The Project Office will be located in a current office; rent is £3,000.
(iii) The additional income is expected to be £400,000 before tax,which is payable at 30%
The Relevant Costs are:

• A) £30,000 salary, £3,000 rent, £400,000 income
• B) £22,000 salary, nil rent, £280,000 income
• C) £30,000 salary, £3,000 rent, £280,000 income
• D) £30,000 salary, nil rent, £280,000 income

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Definitions:

Reference Group Influence

The impact that a group you admire or associate with has on your behavior, preferences, and attitudes.

Informal Reference Groups

Groups of individuals from whom one might seek guidance or influence informally, without formal membership or structure, such as friends, family, or colleagues.

Formal Reference Groups

Groups with a structured system of organization and a specific set of expectations that influence an individual's behavior and attitudes.

Marketers

Professionals involved in promoting, selling, and distributing a product or service.