Planet Design Services, Inc., is considering replacing a machine. The following data are available:
Original cost | $630,000 | $510,000 |
Disposal value now | $122,000 | - |
Disposal value in 6 years | 0 | 0 |
Annual cash operating costs | $102,000 | $59,000 |
Which of the data provided in the table is a sunk cost?
◦ the annual cash operating costs of the old machine
◦ the annual cash operating costs of the replacement machine
◦ the disposal value of the old machine
◦ the original cost of the old machine