Question: QUESTION 8. Dune Ltd is considering a project that will require the use of a crane that cost 600,000 when it was acquired four years

QUESTION 8. Dune Ltd is considering a project that will require the use of a crane that cost 600,000 when it was acquired four years ago and which has a current carrying amount (statement of financial position value) of 370,000. If the project is not undertaken, the crane could be sold for 180,000 or it could be used for another project. If it is used for the other project, the business will not have to purchase another crane for 250,000. The business uses the net present value (NPV) method to appraise investment projects. What is the relevant cost of the machine when calculating the NPV of the project? A 600,000 B 370,000 C 250,000 D 180,000

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