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A company paid $200,000 10 years ago for a specialized machine that has no salvage value and is being depreciated at the rate of $10,000
A company paid $200,000 10 years ago for a specialized machine that has no salvage value and is being depreciated at the rate of $10,000 per year. The company is considering using the machine in a new project that will have incremental revenues of $28,000 per year and annual cash expenses of $20,000. In analyzing the new project, the $10,000 depreciation on the machine is an example of a(n): OA. Opportunity cost. OB. Sunk cost C. Incremental cost. D. Variable cost
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