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Disney will build a new ride for Frozen at the Epcot theme park. The ride will replace the Maelstrom ride at the Norway pavilion. Suppose
Disney will build a new ride for Frozen at the Epcot theme park. The ride will replace the Maelstrom ride at the Norway pavilion. Suppose that the Imagineers have priced out the ride, and they think they can use some old ride vehicles and equipment from the retired Snow White ride. If the project is rejected, the equipment could be sold to another amusement park for $100,000. The equipment has been fully depreciated. If the tax rate for Disney is 37%, what is the opportunity cost of using the Snow White equipment?
\begin{tabular}{l|c|} \hline Market value & $100,000 \\ \hline Book value & $0.00 \\ \hline Tax rate & \\ \hline Opportunity cost of old ride equipment & \\ \hline \end{tabular}
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