The factory space for capital budgeting purposes

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Reference no: EM131342125

If a firm has the option of leasing some factory space to another firm or utilizing it for another product line, then if the firm chose the product line how should it handle the lost lease payments on the factory space for capital budgeting purposes?

Ignore it.

Include it as an opportunity cost.

Include half of it as additional revenue for the project.

Include the property taxes but nothing else.

Reference no: EM131342125

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