While developing a new product line, cook company spent $3 million two years ago to build a plant for a new product. it then decided not to go forward with the project, so the building is available for sale or for a new product. cook owns the building free and clear⎯there is no mortgage on it. which of the following statements is correct?
a. since the building has been paid for, it can be used by another project with no additional cost. therefore, it should not be reflected in the cash flows for any new project.
b. if the building could be sold, then the before-tax proceeds that would be generated by any such sale should be charged as a cost to any new project that would use it.
c. this is an example of an externality, because the very existence of the building affects the cash flows for any new project that rowell might consider.
d. if there is a mortgage loan on the building, then the interest on that loan would have to be charged to any new project that used the building.
e. none of the above.

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The following selected circumstances relate to pending lawsuits for erismus, inc. erismus’s fiscal year ends on december 31. financial statements are issued in march 2019. erismus prepares its financial statements according to u.s. gaap. required: indicate the amount erismus would record as an asset, liability, or not accrued in the following circumstances. 1. erismus is defending against a lawsuit. erismus's management believes the company has a slightly worse than 50/50 chance of eventually prevailing in court, and that if it loses, the judgment will be $1,000,000. 2. erismus is defending against a lawsuit. erismus's management believes it is probable that the company will lose in court. if it loses, management believes that damages could fall anywhere in the range of $2,000,000 to $4,000,000, with any damage in that range equally likely. 3. erismus is defending against a lawsuit. erismus's management believes it is probable that the company will lose in court. if it loses, management believes that damages will eventually be $5,000,000, with a present value of $3,500,000. 4. erismus is a plaintiff in a lawsuit. erismus's management believes it is probable that the company eventually will prevail in court, and that if it prevails, the judgment will be $1,000,000. 5. erismus is a plaintiff in a lawsuit. erismus’s management believes it is virtually certain that the company eventually will prevail in court, and that if it prevails, the judgment will be $500,000.

In macroeconomics, to study the aggregate means to study blank