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147 Bramble Corp. is contemplating the replacement of an old machine with a new one. The following information has been gathered: Old Machine New Machine

147

Bramble Corp. is contemplating the replacement of an old machine with a new one. The following information has been gathered:

Old Machine New Machine
Price $420000 $840000
Accumulated Depreciation 126000 -0-
Remaining useful life 10 years -0-
Useful life -0- 10 years
Annual operating costs $336000 $252000

If the old machine is replaced, it can be sold for $33600. Which of the following amounts is a sunk cost?

$336000

$840000

$294000

$252000

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