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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?
Fuller Industries is considering replacing a machine that is presently used in its production process. Which of the following amounts represents a sunk cost? Original cost Old Machine $60,000 Remaining useful life in years Current age in years 055 5 5 Replacement Machine $46,000 50 5 0 Book value $33,000 Current disposal value in cash $10,000 Future disposal value in cash (in 5 years) $0 $0 Annual cash operating costs $7,000 $4,000 A. $46,000 OB. $60,000 OC. $33,000 OD. $10,000
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