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
Correct Answer:
Verified
Correct Answer:
Verified
Related Questions
Q32: If a project permits a reduction in
Q56: Offer examples to confirm that firms do
Q65: If a project is expected to increase
Q67: Which of the following categories would be
Q68: How does net working capital affect the
Q70: Calculate the NPV for the following capital
Q71: Which of the following typically results from
Q72: Sunk costs do not affect project NPV.
Q73: Which of the following costs probably should
Q74: Allocations of overhead should not affect a