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Breezy Company is considering the replacement of equipment that has a current book value of $355,000. Breezy has an opportunity to sell the equipment for

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Breezy Company is considering the replacement of equipment that has a current book value of $355,000. Breezy has an opportunity to sell the equipment for $255,000. The cost of replacing the old equipment with a new machine is $315,000. The cost of operating the new equipment is $26,000 per year less than the cost of operating the old equipment. The new equipment has a 5-year useful life. The amount of the sunk cost for this replacement decision is Multiple Choice O $26.000 0 $315.000 0 $255,000 0 0 $355,000

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