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Mathews Company is considering replacing equipment which originally cost $450,000 and which has $400,000 accumulated depreciation to date. A new machine will cost $640,000 and

Mathews Company is considering replacing equipment which originally cost $450,000 and which has $400,000 accumulated depreciation to date. A new machine will cost $640,000 and the old equipment can be sold for $10,000.

What is the sunk cost in this situation?

$440,000

$40,000

$50,000

$190,000

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