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State the fictional baseline
Without the proposal, the owned building earns net receipts of 40 per year. The case treats those receipts as feasible. Both proposal arrangements also cause a separate lost contribution of 30 per year elsewhere in the firm.
Write two alternative arrangements
| Arrangement | Building-related effect | Other lost contribution | Total |
|---|---|---|---|
| Use the owned building | −40 forgone rent | −30 | −70 |
| Lease another building and retain owned rent | −50 external lease | −30 | −80 |
Do not mix the branches
Adding −50 lease and −40 forgone rent to the same arrangement would require that it actually leases the other building and also gives up the owned rental. That is not either arrangement as described here.
Keep omitted differences visible
The illustration isolates these annual effects. It has not compared setup costs, capacities, tax treatment or project receipts. A complete value comparison needs the full dated schedule for each feasible arrangement.