Barnes Corp. has some obsolete inventory that was purchased for $10,000 a few years ago. Barnes believes it can probably sell the inventory as is for $5,000 or can spend $8,000 to upgrade it. The upgraded inventory would likely sell for $20,000. When making a decision whether to sell the inventory as-is or upgrade it, the sunk cost in this scenario is: Multiple Choice the $20,000 selling price of the upgraded inventory. o the $5,000 the inventory could be sold for as-is. o the $10,000 paid for the inventory a few years ago. o o the $8,000 that would have to be spent to upgrade the inventory. Burgers R Us purchased a new fryer for $48,000 to replace its old fryer. The new fryer has a 8 year life and an expected salvage value of $6,000. The old fryer will be sold immediately for its salvage value of $8,000. Annual cost savings from the new fryer are expected to be $10,000 per year. The payback period of the new machine is closest to: 4.8 years 7.0 years 2.7 years