If the old machine is replaced, it can be sold for $32800. Which of the following amounts is a sunk cost? $246000 $820000 $28700
0 $328000
1 answer:
Answer: $287,000
Explanation:
Sunk costs are costs that have already been incurred and so should make no impact on the decision to be made. In the case of fixed assets to be replaced, the Sunk cost would be the Book value of the Asset.
Sunk Cost of Old Machine = Book Value of old machine
Sunk Cost of Old Machine = Cost Price - Accumulated Depreciation
Sunk Cost of Old Machine = 410,000 - 123,000
Sunk Cost of Old Machine = $287,000
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Answer:
Interest in 5 years will be $1418.07 which is near about $1420
So option (D) will be correct answer
Explanation:
We have given amount invested, that is principal amount P = $5000
Rate of interest r = 5 %
Time taken t = 5 years
As interest is compounded monthly so rate of interest
And time period n = 12×5 = 60 period
So total amount after 5 year will be equal to
We have to find the interest
Interest will be equal to = total amount - principal amount = $6418.07 - $5000 = $1418.07
Which is near about $1420 so option (D) will be correct answer