Crane Company is contemplating the replacement of an old machine with a new one. The following information has been gathered:

	Old Machine		New Machine
Price	$200000		$400000
Accumulated Depreciation	60000		-0-
Remaining useful life	10 years		-0-
Useful life	-0-		10 years
Annual operating costs	$160000		$120000

If the old machine is replaced, it can be sold for $16000. Which of the following amounts is a sunk cost?

$160000

$400000

$120000

$140000