Ten years ago a company spent $10 million on a large machine.It is expected that the machine will be useful for two more years.What should the company's financial managers do?
A) They should consider the value of the machine today and in two years, and the potential cost and benefit to extend the machine's life.
B) They should scrap the machine on schedule - the plan was made, so stick to the plan.
C) They should sell the machine now.It always makes more sense to upgrade to new technology than to keep older technology running.
D) They should hand this decision off to the company's accountants.This is an accounting decision, not a finance decision.
Correct Answer:
Verified
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