Global industries (GI) is planning to use some existing equipment from its own facilities in a foreign project. The used equipme
nt has a book value of $2 million but a market value of $6 million. If GI's marginal tax rate is 34%, what is its opportunity cost of using the used equipment in the foreign project?
a) $2 million
b) $3.25 million
c) $6 million
d) $4.64 million
a) $2 million
b) $3.25 million
c) $6 million
d) $4.64 million
1 answer:
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