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You are in charge of purchasing equipment for a construction firm. You just bought 5 new machines, each costing $1MM. After some market research, you concluded that: 2 machines can be sold in the secondary market for $500K 3 machines can be sold in the secondary market for $200K What are the sunk costs associated with purchasing the machines the 5 machines? $5 million  $3.4 million  $5000,000 $1.6 million

- November 14, 2022 - Edwin Tunner

You are in charge of purchasing equipment for a construction firm. You just bought 5 new machines, each costing $1MM. After some market research, you concluded that:

  • 2 machines can be sold in the secondary market for $500K
  • 3 machines can be sold in the secondary market for $200K

What are the sunk costs associated with purchasing the machines the 5 machines?

$5 million 

$3.4 million 

$5000,000

$1.6 million 

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