00:01
Question is about an unused warehouse or a portion of the unused warehouse.
00:15
And we wanted to know its value in how that needs to be budgeted for this new project.
00:36
So when it's saying value, i imagine that it's asking about its current value, not future expenses, that it may incur.
00:48
I think it's asking currently this currently unused warehouse space.
00:54
We want to know the value of the unused warehouse space.
00:58
So our options are a set cost, which is something that was purchased prior and you can't get the money back in any way.
01:11
And so it needs to not be taken into account.
01:14
And that's what a cent cost is, is it's prior purchased.
01:26
And you can't get any money back.
01:28
For it or aren't planning to.
01:30
V says it's irrelevant to the investment decision.
01:44
C says it's an opportunity cost which talks about like if it's not the best decision then the opportunity cost is like the difference between the best decision and the next best decision financially like monetary difference and then d is that it's an overhead expense.
02:30
So of these, i feel like the answer is probably a, that the current value is a sunk cost...