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Topaz Company plans to replace an old machine that originally cost $95,000. A new machine will cost $900,000, and the old machine can be sold
Topaz Company plans to replace an old machine that originally cost $95,000. A new machine will cost $900,000, and the old machine can be sold for $25,000. The new machine will generate profits of $100,000 annually for 5 years. However, Topaz can also invest $875,000 in a Certificate of Deposit (CD) yielding 12% annually. What is the opportunity cost in this situation
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