Basiclang Company is assessing whether to sell its unused car parts for P27,000. The parts were previously purchased for P100,000. The company will incur refurbishing costs of P15,000 to be able to sell them. Which alternative should the company pursue? Group of answer choices b. a. The company is indiferrent c. Sell, there is an incremental benefit of P12,000 d. Sell, there is an incremental benefit of P27,000

EBK CFIN
6th Edition
ISBN:9781337671743
Author:BESLEY
Publisher:BESLEY
Chapter10: Project Cash Flows And Risk
Section: Chapter Questions
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22. Basiclang Company is assessing whether to sell its unused car parts for P27,000. The parts were previously purchased for P100,000. The company will incur refurbishing costs of P15,000 to be able to sell them. Which alternative should the company pursue?

Group of answer choices
b. a. The company is indiferrent
c. Sell, there is an incremental benefit of P12,000
d. Sell, there is an incremental benefit of P27,000
e. Don’t sell, it will incur a loss of P73,000
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