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A boat, costing $109,000 and uninsured, was wrecked the very first day it was used. This boat can either be disposed for $12,000 cash
A boat, costing $109,000 and uninsured, was wrecked the very first day it was used. This boat can either be disposed for $12,000 cash and be replaced with a similar boat costing $112.000, or rebuilt for $99,000 and be brand new as far as operating characteristics and looks are concemed. A relevant cost analysis of the decision to replace the boat shows Multiple Choice A cost equivalence between the two decision options A $1,000 cost advantage associated with the decision to fix the old boat A $22.000 cost advantage associated with the decision to fix the old boat.
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