The book value of an old machine is always considered an opportunity cost in a decision.

Name: The book value of an old machine is always considered an opportunity cost in a decision.
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Question

Quizplus · Accepted Answer

The book value of an old machine is a sunk cost, not an opportunity cost, because it represents past expenditures that cannot be recovered or changed by current or future actions. Opportunity costs involve the potential benefits foregone by choosing one alternative over another.

The Book Value of an Old Machine Is Always Considered