Question

A moving company purchased a van for $50,000. If the company shuts down now, it could sell the van for $30,000. The relevant
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Answer #1

Option C ($ 30,000)

Explanation-

$50,000 is sunk cost. Sunk cost refers to money that has already been spent and which cannot be recovered.

For taking the decision only the inflow of $ 30,000 will be relevant. Therefore, fhe the answer is option C that is $30,000.

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