A Firm Has a General-Purpose Machine, Which Has a Book

question 11

Multiple Choice

A firm has a general-purpose machine, which has a book value of $300,000 and is worth $500,000 in the market. If the tax rate is 21 percent, what is the opportunity cost of using the machine in a project?

• A)$500,000
• B)$458,000
• C)$300,000
• D)$200,000

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Definitions:

Straightforwardness

The quality of being direct, clear, and honest in communication without any ambiguity or evasion.

Evasiveness

The tendency to avoid direct answers or clarity, often to escape responsibility or hide the truth.

Cultural Dimension

An aspect of culture that can be measured relative to other cultures, such as individualism vs. collectivism, that helps in understanding the differences and interactions between cultures.

Dimension Of Culture

An aspect or characteristic that differentiates cultures from each other, such as individualism vs collectivism or power distance.