PC Express Is Evaluating the Purchase of a New Machine

question 105

Multiple Choice

PC Express is evaluating the purchase of a new machine that will cost $300 000. The company bought the existing machine for $200 000 five years ago and can sell it today for $50 000. What is the marginal cost of buying the new machine?

• A) $250 000
• B) $100 000
• C) $300 000
• D) $50 000