Assume Your Firm Has an Unused Machine That Originally Cost

question 26

Multiple Choice

Assume your firm has an unused machine that originally cost $75,000, has a book value of $20,000, and a market value of $25,000. Ignoring taxes, what is the opportunity cost of this machine?

• A) $75,000
• B) $25,000
• C) $20,000
• D)$5,000

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