Management of Plascencia Corporation is considering whether to purchase a new model $370$ machine costing $$538,000$ or a new model $220$ machine costing $$476,000$ to replace a machine that was purchased $8$ years ago for $$504,000.$ The old machine was used to make product $143L$ 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 $143$ L$.$

Management also considered, but rejected, the alternative of simply dropping product I$43$L$.$ If that were done, instead of investing $$476,000$ in the new machine, the money could be invested in a project that would return a total of $$480,000.$

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

Multiple Choice