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    Corporate Finance Study Set 4
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    Exam 9: Using Discounted Cash-Flow Analysis to Make Investment Decisions
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    Assume Your Firm Has an Unused Machine That Originally Cost
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Assume Your Firm Has an Unused Machine That Originally Cost

Question 26

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

Correct Answer:

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