The Tolar Company has 400 obsolete desk calculators that are carried in inventory at a total historic cost of £26,800. If these calculators are upgraded at a total cost of £10,000, they can be sold for a total of £30,000. As an alternative, the calculators can be sold in their present condition for £11,200. If Talar decided to sell the calculators in their present condition it will incur an opportunity cost of: a. £20,000 O b. £30,000 O c. £26,800 O d. £15,600

EBK CONTEMPORARY FINANCIAL MANAGEMENT
14th Edition
ISBN:9781337514835
Author:MOYER
Publisher:MOYER
Chapter9: Capital Budgeting And Cash Flow Analysis
Section: Chapter Questions
Problem 14P
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The Tolar Company has 400 obsolete desk calculators that are carried in inventory at a total historic cost
of £26,800. If these calculators are upgraded at a total cost of £10,000, they can be sold for a total of
£30,000. As an alternative, the calculators can be sold in their present condition for £11,200.
If Talar decided to sell the calculators in their present condition it will incur an opportunity cost of:
O a. £20,000
O b. £30,000
O c. £26,800
O d. £15,600
Transcribed Image Text:The Tolar Company has 400 obsolete desk calculators that are carried in inventory at a total historic cost of £26,800. If these calculators are upgraded at a total cost of £10,000, they can be sold for a total of £30,000. As an alternative, the calculators can be sold in their present condition for £11,200. If Talar decided to sell the calculators in their present condition it will incur an opportunity cost of: O a. £20,000 O b. £30,000 O c. £26,800 O d. £15,600
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