Vanseth Resources has several on-going projects including a commitment of $2M to a gold mining excavation in Alberta. The government recently announced a 25% tax credit for mining companies that engage in oil sand exploration. Vanseth is evaluating its projects to finance oil sand development. How will the gold mining project be assessed during this evaluation?
a. Relevant cost
b. Sunk cost
c. Differential cost
d. Avoidable cost