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QUESTION

A firm bought a used machine 2 years ago for $1500. When new, the machine cost $8000. Today it could be sold for $500. Which is true?

A firm bought a used machine 2 years ago for $1500. When new, the machine cost $8000. Today it could be sold for $500. Which is true?

A) The $1500 paid 2 years ago is included in the analysis. 

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