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A boat, costing $108,000 and uninsured, was wrecked the very first day it was used. This boat can either be disposed for $11,000 cash and
A boat, costing $108,000 and uninsured, was wrecked the very first day it was used. This boat can either be disposed for $11,000 cash and be replaced with a similar boat costing $110,000, or rebuilt for $98,000 and be brand new as far as operating characteristics and looks are concerned. A relevant cost analysis of the decision to replace the boat shows Multiple Choice O A cost equivalence between the two decision options. An $11,000 net advantage associated with the decision to fix the old boat. A $1,000 cost advantage associated with the decision to fix the old boat. A $21,000 cost advantage associated with the decision to fix the old boat
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