Equipment owned by a company has a net book value of €1,800 and has been idle for some months. It could not be used on a 6 months contract which is being considered. If not used on this contract, the equipment would be sold now for a net amount of €2,000. After use on the contract, the equipment would have no saleable value and would be dismantled.

The cost of dismantling and disposing of it would be €800.

What is the total relevant cost of the equipment to the contract?

(a) €1,200

(b) €1,800

(c) €2,000

(d) €2,800