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Tombstone Industries is considering a new product expansion. The project will require the firm to...

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Finance

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Tombstone Industries is considering a new product expansion. The project will require the firm to use an old piece of equipment that could otherwise be sold today. Currently, the old piece of equipment has a market value of $200,000, and has a book value of $100,000. The tax rate facing the firm is 34%, and the cost of capital is 18%. What is the opportunity cost today for accepting this project? $176,000 $159,200 $166,000 $172,800 $147,200

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