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Fuller Industries is considering replacing a machine that is presently used in its production process. Which of the following amounts represents a sunk cost? Old
Fuller Industries is considering replacing a machine that is presently used in its production process. Which of the following amounts represents a sunk cost? Old Machine Original cost $70,000 Remaining useful life in years 5 Current age in years 5 Replacement Machine $45,000 5 0 Book value $33,000 Current disposal value in cash $9,000 Future disposal value in cash (in 5 years) Annual.cash operating costs $0 $7,000 $4,000 $0 OA. $33,000 OB. $70,000 C. $45,000 D. $9,000
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