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:

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14 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:
$20,000
$25,000
$5,000
$75,000
O в ос
A
B.
C
D
OA
O
Transcribed Image Text:14 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: $20,000 $25,000 $5,000 $75,000 O в ос A B. C D OA O
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