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Bloomfield's has some equipment sitting idle in a warehouse. The equipment is fully paid for and also fully depreciated. If the firm decides to use
Bloomfield's has some equipment sitting idle in a warehouse. The equipment is fully paid for and also fully depreciated. If the firm decides to use this equipment for a new project, what cost, if any. should the firm Include in its startup costs for the project? There is no cost to the project for this equipment the original purchase price of the equipment should be included in the startup costs. The original purchase price minus any tax savings realized to date on the depreciation should be included in the startup costs. The current market value of the equipment should be included in the startup costs. The annual storage cost for the equipment should be included as a cash inflow in the startup costs
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