Management of Plascencia Corporation is considering whether to purchase a new model $370$ machine costing $$498,000$ or a new model $220$ machine costing $$469,000$ to replace a machine that was purchased $6$ years ago for $$453,000.$ The old machine was used to make product I$43$L until it broke down last week. Unfortunately, the old machine cannot be repaired.

Management has decided to buy the new model $220$ machine. It has less capacity than the new model $370$ machine, but its capacity is sufficient to continue making product I$43$L$.$

Management also considered, but rejected, the alternative of simply dropping product I$43$L$.$ If that were done, instead of investing $$469,000$ in the new machine, the money could be invested in a project that would return a total of $$478,000.$

In making the decision to buy the model $220$ machine rather than the model $370$ machine, the sunk cost was:

Multiple Choice

$$469,000$

$$478,000$

$$498,000$

$$453,000$