Problem D: Your company is considering replacing their old punch press machine. The machine was purchased 10 years ago for $35,000. The book value for this machine is now SO but they can sell it for $2,000 in the market. The engineer who is responsible for the project found a new punch press machine for $47,000. Neglect taxes. The MARR is 12%. 15. What is the sunk cost? a. $0 b. $35,000 c. $165,000 d. $200,000 16. What is the opportunity cost of the old machine (Defender) if the company decides to keep the old machine? a. S0 b. $1,200 c. $2,000 d. $38,000 17. What is the investment required for the Challenger using cash flow approach? a. $0 b. $12,000 c. $45,000 d. $35,000