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The cost of the land to econanalyst is zero and econanalyst

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The EconAnalyst Corporation is a think tank located on 15 prime acres of seafront property in Miami, Florida. EconAnalyst purchased the land for its offices from the state in 2010 for $250,000. "Given that the money EconAnalyst paid for its land in 2010 can be treated as a sunk cost, the cost of the land to EconAnalyst is zero and EconAnalyst would thus be foolish to consider purchasing a new site in Florida and relocating there." Is this statement true, false, or uncertain?

Reference no: EM13395691

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