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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
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.
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