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Problem:

Jenson Computers has 850 computers that are no longer useful. The original cost was $600,000. The computers could be upgraded for $195,000 and sold for $728,000. Or, they could be sold as is for $100,000.

Required:

Question 1: What is their sunk cost?

Question 2: What is their opportunity cost if they sell it for $100,000?

Note: Provide support for your rationale.

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Basic Finance, Finance

Category:- Basic Finance
Reference No.:- M91174712

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