Assume Your Firm Has an Unused Machine That Originally Cost

question 69

Multiple Choice

Assume your firm has an unused machine that originally cost $75,000,has a book value of $20,000,and is currently worth $25,000.Ignoring taxes,the correct opportunity cost for this machine in capital budgeting decisions is:

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

---

Definitions:

Negatively Skewed

Describes a distribution of data where the tail is on the left side of the distribution, indicating that the majority of data points are located to the right of the mean.

Research Methods

Techniques or procedures used to gather and analyze information to increase understanding of a topic or issue.

Experimental Designs

Refers to the plan and structure of an investigation aimed at testing hypotheses through controlled and manipulated variables.

Dependent Variable

A variable in an experiment or study whose changes are determined by the manipulation of one or more independent variables.