2. Given the cash flow diagram below, answer the questions by marking on correct HOY 1 2 ← $19,500 $175,000 4 1.D $36,000 the $122,000 8 1. What is the initial cost of this new machine? 1.A $122,000 1.B $19,500 4$36,000 9 1.C $175,000 answer.
2. Given the cash flow diagram below, answer the questions by marking on correct HOY 1 2 ← $19,500 $175,000 4 1.D $36,000 the $122,000 8 1. What is the initial cost of this new machine? 1.A $122,000 1.B $19,500 4$36,000 9 1.C $175,000 answer.
Chapter1: Making Economics Decisions
Section: Chapter Questions
Problem 1QTC
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The initial cost of an asset/machine/project is the cost incurred at time zero. The initial cost is also known as the first cost. The first cost or initial cost includes purchasing cost, installation cost any other cost which is incurred to put the asset/machine into use.
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