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Company purchased equipment five years ago for $5000. The company is considering purchasing new equipment for $6000 to replace the equipment purchased five years ago.

Company purchased equipment five years ago for $5000. The company is considering purchasing new equipment for $6000 to replace the equipment purchased five years ago. The new equipment would also have $1000 in installation costs. The new equipment should save the company $600 per year in energy costs. What is considered the Sunk Cost total in this situation.

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