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answer all parts to question please Sunk costs and opportunity costs Masters Goll Products, the, spent four years and $1,200,000 to develop its new line
answer all parts to question please
Sunk costs and opportunity costs Masters Goll Products, the, spent four years and $1,200,000 to develop its new line de club heads to replece a fine that is becoming a. How should the $1,200,000 in development costs be classifled? b. How should the $248,000 sale price for the existing line be classiffed? c. What are all the incrementai cash flows for years 0 thru i4? (Note: Assume that all of these numbers are net of taxes.) a. How thould the $1,200,000 in development costs be classifed? (Select the best answer below) cannot be retrioved so it is a sunk cout. B. The $3,200,000 develogment couts should be considered part of the decision to go ahead with the new production. This money has atready beten spent as purt of the opportinity cout of the proiect. Cannot be retrieved so it is an oppontunity cont. investrent project Step by Step Solution
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