Brookfield Multiplex Has Estimated That a New Building Will Cost

Multiple Choice

Brookfield Multiplex has estimated that a new building will cost $2,500,000 to construct.Land was purchased a year ago for $500,000 and could be sold today for $550,000.An environmental impact study required by the state was performed at a cost of $48,000.For capital budgeting purposes,what is the relevant cost of the new building?

A) $2,500,000
B) $3,048,000
C) $3,050,000
D) $3,098,000