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Six years ago, Hendershot Stables paid $84,000 in cash for equipment. Last year, the company spent $7,600 on equipment upgrades. The company no longer uses this equipment and has received a cash offer of $39,600 from a buyer. The current book value of the equipment, including all updates, is $32,200. If the company decides to keep the equipment and use it for a new project, what value, if any, should the company assign to the equipment

Respuesta :

The value that should be assigned by the company to the equipment is $39,600.

What is opportunity cost?

Opportunity cost can be described as the potential benefits that is missed out on by a company when it chooses one option over another.

As the company is thinking of using the equipment for a new project, this implies that the opportunity cost of the equipment for the project will be $39,600 offered by a buyer.

Therefore, the value that should be assigned by the company to the equipment is $39,600.

Learn more about opportunity costs here: https://brainly.com/question/12121515.

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