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Begley, Inc. is contemplating the replacement of an old machine with a new one. The following information has been gathered: Old Machine New Machine Price

Begley, Inc. is contemplating the replacement of an old machine with a new one. The following information has been gathered: Old Machine New Machine Price $250,000 $500,000 Accumulated Depreciation 75,000 -0- Remaining useful life 10 years -0- Useful life -0- 10 years Annual operating costs $200,000 $150,500 If the old machine is replaced, it can be sold for $20,000. Which of the following amounts is a sunk cost?

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