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A Business Is Evaluating a Potential Investment in a New

Question 59

Multiple Choice

A business is evaluating a potential investment in a new machine that it will use for six years. The quoted price is $10 000. The business expects to pay transportation costs of $800 to get the machine to its factory, and an additional $400 to install the machine. What is the initial cost of this proposal?


A) $10 000
B) $10 400
C) $11 200
D) $10 800

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