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6. The value of currently unused warehouse space that will be used as part of a...

6. The value of currently unused warehouse space that will be used as part of a new capital budgeting project​ is: A. an overhead expense. B. an opportunity cost. C. irrelevant to the investment decision. D. a sunk cost.

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Answer #1

Since the warehouse is unused, there will be no impact on costs as the cost of the warehouse is irrelevant because even if the capital budgeting project was not undertaken, the warehouse would still have been unused and when the project is undertaken, there is no additional cost incurred for the warehouse or no other opportunities lost

So, as per above discussion, option C is the correct option

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