A company paid

$200,000

ten 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

$200,000

original cost of the machine is an example\ Multiple Choice\ Incremental cost.\ Opportunity cost.\ Variable cost.\ Sunk cost.\ Out-of-pocket cost.

A company paid $200,000 ten 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 $200,000 original cost of the machine is an example of a(n) : Multiple Choice Incremental cost. Opportunity cost. Variable cost. Sunk cost. Out-of-pocket cost