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La Forme Ideal SA is a company that makes clothing The company has a product line that produces women s tops of regular sizes The same machine could be used to produce petite sizes as well However

La Forme Ideal SA is a company that makes clothing. The company has a product line
that produces women’s tops of regular sizes. The same machine could be used to 
produce petite sizes as well. However, the life of the machines will be reduced from 
four more years to two more years if the petite size production is added. The cost of 
identical machines with a life of eight years is €2 million. Assume the opportunity 
cost of capital is 8 per cent. What is the opportunity cost of adding petite sizes?

Apr 16 2021 View more View Less

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