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

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Definitions:

Contradictory

Pertains to statements or propositions that directly oppose each other in such a way that if one is true, the other must necessarily be false.

Chauvinists

Individuals who show excessive or prejudiced loyalty or support for a particular group, cause, or gender, often disregarding reasonable opposition.

Disprove

To prove a statement or theory to be false or incorrect.

Proposition

An assertion or declaration that conveys an opinion or judgment, which may be either true or false.