11-2: Hiawatha Nobel Company's management is preparing relevant cash flows for an expansion project of its explosives division. You are asked to review the various decisions to determine whether costs are sunk costs or opportunity costs related to the expansion, and are thinking of this as a replacement decision. For each situation, determine whether it is a sunk cost or an opportunity cost.

(A) The machine shop will use the same old equipment used on the previous project, which is valued at $100,000, to produce new hand grenades.

(B) Wiring for detonation will replace old wiring worth $50,000 that is currently in use for the old project.

(C) The land required for demolition testing can be acquired from existing property currently leased to another company at $900,000 per year.

(D) Hiawatha Nobel needs additional office space and will move into unused space that was purchased five years ago and is not currently in use