Question.3021 - 1. ABC Corp. owns a piece of land and building a few miles from its headquarters. The land originally cost ABC $500,000 to purchase. ABC is considering using the facility for a new training program. It could also rent a building about the same distance from its headquarters for $20,000 a year. A developer has offered ABC $2.5 million for its property. What factors should ABC consider when deciding whether or not to use its own facility or to sell it and rent the other building? What would you recommend?
Answer Below:
spend xx purchase xxx land xx to xx considered xx sunk xxxx as x result xxxx should xx ignored xx the xxxxxxxx making xxxxxxx Factors xxxxx ABC xxxxxx consider x ABC xxxxxx consider xxx maintenance xxxx associated xxxx using xxx building xx a xxxxxxxx facility xx the xxxx associated xxxx this xx high xxxx ABC xxxxxx sell xx and xxxx a xxxxxxxx site xxxxxxx - xxxxxxx factor xx be xxxxxxxxxx is xxx interest xxxx If xxxxxxxx rate xx really xxxx ABC xxxxxx sell xxx building xxx million xxx invest xxxx money xx per xx recommendation xxx should xxxx the xxxxxxxx and xxx million xxxx To xxxxxxxx an xxxxxx of xxx annum xxx return xxxxx to xx less xxxx on xxxxxxx of xxxx And xxxxxxxxx fund xxxxxxxx generate x return xx - xxx year xx a xxxxxx investing xxx money xxxxx be x far xxxxxx option xxxxxxx of xxxxxxxxxx rent xxxxxxx the xxxxx of xxxx estate xxxxx increase xx well xx invested xxx that xxxxx generate x handsome xxxx term xxxxxx But xxx needs xx evaluate xxx current xxxxxxxx of xxxx estate xxx the xxxxxxxx returns xxxx it xxx - xxxxx down xxx line xxxx nbsp xxxxxx TC xx VC xxx AFC xxx MC xxxx - xxxx nbsp xxxx nbsp xxxx - xxxx nbsp xxxx nbsp xxxx nbsp xxxx nbsp xxxx nbsp xxxx nbsp xxxx nbsp xxxx nbsp xxxx nbsp xxxx nbsp xxxx nbsp xxxx nbsp xxxx nbsp xxxx nbsp xxxx nbsp xxxx nbsp xxxx nbsp xxxx nbsp xxxx nbsp xxxx nbsp xxxx nbsp xxxx nbsp xxxx nbsp xxxx nbsp xxxx nbsp xxxx nbsp xxxx nbsp xxxx nbsp xxxx nbsp xxxx nbsp xxxx nbsp xxxx nbsp xxxx nbsp xxxx nbsp xxxx nbsp xxxx nbsp xxxx nbsp xxxx nbsp xxxx nbsp xxxx nbsp xxxx nbsp xxxx nbspMore Articles From Economics
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