What is its opportunity cost

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Question - Global Industries (GI) is planning to use some existing equipment from its own facilities in a foreign project. The used equipment has a book value of $2 million but a market value of $6 million. If GI's marginal tax rate is 34%, what is its opportunity cost of using the used equipment in the foreign project?

a) $2 million

b) $3.25 million

c) $6 million

d) $4.64 million

Reference no: EM132753381

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