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Lets take the same example but add a little more complexity. So far we have...

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Accounting

Lets take the same example but add a little more complexity. So far we have assumed there was no resale value for the work already completed. Assume that the company could sell the half developed project to another property firm for $60m. The $60m now becomes an opportunity cost, as it is money that could be received. As we have already discussed opportunity costs are relevant costs and so MUST be considered when making a decision.

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