Chegg Home Study tools v My courses v My books Career Life Find solutions for your homework Search home / study / business / accounting / accounting questions and answers / management of plascencia corporation is considering whether to purchas... Question: Management of Plascencia Corporation is considering whether ... Management of Plascencia Corporation is considering whether to purchase a new model 370 machine costing $496,000 or a new model 220 machine costing $481,000 to replace a machine that was purchased 6 years ago for $486,000. The old machine was used to make product 143L until it broke down last week. Unfortunately, the old machine cannot be repaired. Management has decided to buy the new model 220 machine. It has less capacity than the new model 370 machine, but its capacity is sufficient to continue making product 143L. Management also considered, but rejected, the alternative of simply dropping product 143L. If that were done, instead of investing 5481,000 in the new machine, the money could be invested in a project that would return a total of $483,000. In making the decision to buy the model 220 machine rather than the model 370 machine, the sunk cost was: Brewer 8e Rechecks 2018-06-08 Multiple Choice $486,000 S481,000 $496,000 $483,000 Expert