A school district is considering where in town to house its central office (The office must also be located at an existing school for cost reasons).If there are five schools in the district,with locations and size given in the following table,use the COG method to determine at which school the central office should be placed to minimize the average distance between the office and students.
Definitions:
Incremental Cash Flow
is the additional cash flow generated by a company from a new project or investment, used to analyze the profitability of taking on the new project.
Sunk Cost
A cost that has already been incurred and cannot be recovered, which should not influence future business decisions.
Fixed Cost Financing
A financing strategy where the costs remain constant regardless of the level of production or sales.
Future Cash Flows
Expected cash receipts and payments a business anticipates receiving or paying out over a future period.
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