a-company-is-evaluating-whether-to-invest-in-additional-machinery-if-the-mrp-of-

Question

A company is evaluating whether to invest in additional machinery. If the MRP of the machinery is $1,000 and the cost is $800, what should the company do?

Accepted Answer

Invest in the machinery, as the MRP exceeds the cost.

Answer

Do not invest, as the MRP equals the cost.

Answer

Invest only if the MRP is less than the cost.

Answer

Do not invest, as the cost exceeds the MRP.

A company is evaluating whether to invest in additional machinery. If the MRP of the machinery is \$1,000 and the cost is \$800, what should the company do?