Question

he Tattle Teller has a printing press sitting idly in its back room. The press has no market value to another printer because the machine utilizes old technology. The firm could get $250 for the press as scrap metal. The press is six years old and originally cost $148,000. The current book value is $2,570. The president of the firm is considering a new project and feels he can use this press for that project. What value, if any, should be assigned to the press as an initial cost of the new project

Answer 1

Answer: $250

Step-by-step explanation:

The value that should be assigned to the press as an initial cost of the new project will simply be the relevant cost which has to.do with the opportunity cost that's what is forgone for something else to happen.

In this scenario, the value that should be assigned to the press as an initial cost of the new project will be $250 which is the value that the firm could get for the press as scrap metal.