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Planet Design Services, Inc., is considering replacing a machine. The following data are available: ...

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charchew:
Planet Design Services, Inc., is considering replacing a machine. The following data are available:

ReplacementOld MachineMachineOriginal cost$630,000$510,000Useful life in years126Current age in years60Book value$350,000-Disposal value now$122,000-Disposal value in 6 years00Annual 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

katara:
the original cost of the old machine

宋秉原:
Thank You

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