Description of this paper

specialized machine that has no salvage value and is being depreciated

Description

solution


Question

A company paid $200,000 ten years ago for a specialized machine that has no salvage value and is being depreciated at the rate of $10,000 per year. The company is considering using the machine in a new project that will have incremental revenues of $28,000 per year and annual cash expenses of $20,000. In analyzing the new project, the $10,000 depreciation on the machine is an example of a(n);a. Incremental cost.;b. Opportunity cost.;c. Variable cost.;d. Sunk cost.;e. Out-of-pocket cost.

 

Paper#26936 | Written in 18-Jul-2015

Price : $32
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