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A machine owned by a company has been idle for some months but could now be used on a
one year contract which is under consideration. The net book value of the machine is $1,000. If
not used on this contract, the machine could be sold now for a net amount of $1,200. After use on
the contract, the machine would have no saleable value and the cost of disposing of it in one year’s
time would be $800.what is the relevant cost
sir i am unable to understand how to calculate this
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