Acquisition cost of long-lived asset the following data relate to a firm’s purchase of a machine used in the manufacture of its product: invoice price $25,000 applicable sales tax 1,700 cash discount taken for prompt payment 900 freight paid 760 cost of insurance coverage on machine while in transit 625 installation costs 1,500 testing and adjusting costs 975 repair of damages to machine caused by the firm's employees 1,050 prepaid maintenance contract for first year of machine's use 800. determine the acquisition cost of the machine.

For example, the upper right cell shows that if expresso advertises and beantown doesn't advertise, expresso will make a profit of $15 million, and beantown will make a profit of $2 million. assume this is a simultaneous game and that expresso and beantown are both profit-maximizing firms. if expresso decides to advertise, it will earn a profit of $ million if beantown advertises and a profit of $ million if beantown does not advertise. if expresso decides not to advertise, it will earn a profit of $ million if beantown advertises and a profit of $ million if beantown does not advertise. if beantown advertises, expresso makes a higher profit if it chooses . if beantown doesn't advertise, expresso makes a higher profit if it chooses . suppose that both firms start off not advertising. if the firms act independently, what strategies will they end up choosing? expresso will choose to advertise and beantown will choose not to advertise. expresso will choose not to advertise and beantown will choose to advertise. both firms will choose to advertise. both firms will choose not to advertise.