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Management of Svahn, AB Corporation is considering whether to purchase a new model B100 machine...

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Accounting

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Management of Svahn, AB Corporation is considering whether to purchase a new model B100 machine costing $400,000 or a new model 8300 machine costing $440,000 to replace its old machine that was purchased 10 years ago for $300,000 Management has decided to buy the new model 8100 machine. It has less capacity than the new model B300 machine, but its capacity is sufficient to continue making product Management also considered alternative of simply of investing $400,000 in the new machine, the money could be invested in a project that would return a total of $510,000 in making the decision to invest in the model B100 machine, the opportunity cost was: Multiple Choice $510,000 $400,000 $300,000 $440,000

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