The directors of Darlene Fabrik are considering whether or not to start up a new production process. The process would use a machine that is no longer required for the purpose for which it was originally bought. It cost €45 000 four years ago, and accumulated depreciation at the decision date was €13 000. Similar machines of the same age can be sold for €38 000. The same model of machine would now cost €50 000 if purchased new. What is the amount of the opportunity cost for input into the decision process?

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The opportunity cost of the machine is 12 000 The machine would have a book ... View the full answer