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Home Industries is considering replacing a machine that is presently used in its production process. Which of the following amounts represents a sunk cost? Replacement

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Home Industries is considering replacing a machine that is presently used in its production process. Which of the following amounts represents a sunk cost? Replacement Old Machine Machine $55.000 $46,000 5 5 Original cost Remaining useful life in years Current age in years Book value LO 0 $30,000 $9,000 Current disposal value in cash Future disposal value in cash (in 5 years) Annual cash operating costs $0 $0 $7,000 $4,500 O $30,000 O $55,000 $46,000 $9,000

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