A company paid 400000 five years ago for a specialized

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A company paid $400,000 five years ago for a specialized machine that has no salvage value and is being depreciated at the rate of $40,000 per year. The company is considering using the machine in a new project that will have incremental revenues of $48,000 per year and annual cash expenses of $30,000. In analyzing the new project, the $40,000 depreciation on the machine is an example of a(n):

Reference no: EM13611229

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