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The Private Investigation Firm of Watson & Holmes Is Conducting

Question 21

Multiple Choice

The private investigation firm of Watson & Holmes is conducting an investigation for a wealthy movie star. The investigation is estimated to take 6 months to complete and will use $2,000 in supplies, $120,000 in labor, and $80,000 in overhead. Watson & Holmes' cost of capital is 12%. What are the financial holding costs on this project?


A) $0
B) $3,030
C) $6,060
D) $12,120

Correct Answer:

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