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Question 6 1 pts The machine your firm currently uses produces a unit of good...

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Question 6 1 pts The machine your firm currently uses produces a unit of good at a cost of $5 per unit and a profit per unit of $3. You can sell the current machine for $4,500. A new machine can produce a unit of good at a cost of $2 per unit and a profit of $6. The new machine costs $10,000. In the capital budgeting analysis (NPV) the cash-flows of switching to the new machine Should include the $4,500 value of the current machine since this is an opportunity cost. Should NOT include the $4,500 value of the current machine since this is a sunk cost. Should only include the incremental cost of $5,500 ($10,000 - $4,500)

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