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Author Question: Planet Design Services, Inc., is considering replacing a machine. The following data are available: ... (Read 420 times)

charchew

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

Replacement
Old MachineMachine
Original cost$630,000$510,000
Useful life in years126
Current age in years60
Book value$350,000-
Disposal value now$122,000-
Disposal value in 6 years00
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


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Marked as best answer by charchew on Mar 6, 2021

katara

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