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Write the available alternative
A fictional owned building could earn net rental cash receipts of 40 per year. Using it for a proposal prevents those receipts. Under that specified baseline, the forgone rental belongs in the incremental comparison even if no purchase occurs today.
Compare alternative arrangements explicitly
Leasing another building for 50 while retaining the rental receipts is a different arrangement from using the owned building. Do not charge both an external lease and forgone rent to one branch unless that branch actually incurs both.
Use the relevant net and dated amounts
| Item | Question |
|---|---|
| Sale or rent alternative | Which is feasible and would otherwise be chosen? |
| Net amount | Which related costs are included? |
| Date | When is the alternative receipt lost? |
| Tax status | Are compared amounts on a consistent basis? |
Avoid assuming an unobserved alternative
A market quote does not automatically prove that the alternative can be executed at that price or time. The educational case treats the stated alternative as available. A real analysis needs evidence for that feasibility.