Lakeside Cafe sent chefs and a manager to Italy and France at a cost of R300 000 to identify suppliers. How should this cost be treated in the NPV analysis?

Question

Answer

Include it as a year 0 outflow

Answer

Spread it over the life of the project

Answer

Include it as a tax-deductible expense in year 1

Answer

Exclude it, because it is a sunk cost

Crowdly

Lakeside Cafe sent chefs and a manager to Italy and France at a cost of R300 000...

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