Comment on and determine the costs which are relevant to the decision regarding whether or not to commit to complete the project

: Computer A has a book value of $1,500 and a current resale value of $800. The computer is needed to fulfill a client order, but if it’s used on this project then its resale value will be zero. The project contract is valued at $5,000. $2,000 has already been spent on specialized software, which will be used on the project and which has no value for any other use. A printer costing $400 is needed for a separate project.

Comment on and determine the costs which are relevant to the decision regarding whether or not to commit to complete the project. Based upon the information at hand, determine whether this project is profitable. Show your calculations.

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