Due to Rapid Growth, a Computer Superstore Is Contemplating Expanding

Due to rapid growth, a computer superstore is contemplating expanding by adding another location. Which of the following items should the financial officer NOT include in estimating the cash flow associated with this expansion?

A) The company owns the land of the future site of the new location.
B) The new location is expected to take sales away from the existing location.
C) The company spent $100,000 six months ago in a major advertising campaign that will help the new store become profitable sooner.
D) All of these items should be included in the analysis.

Correct Answer:

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