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Shira, Inc., is considering replacing equipment. The following data are available: Old Equipment Replacement Equipment $ 50,000 $ 40,000 Original cost $ 8,000 O Disposal
Shira, Inc., is considering replacing equipment. The following data are available: Old Equipment Replacement Equipment $ 50,000 $ 40,000 Original cost $ 8,000 O Disposal value now 0 0 Disposal value in 5 years Annual cash operating costs $ 9,000 $ 8,000 Which of the data above is a sunk cost? The annual cost of operating the new equipment. The annual cost of operating the old equipment The disposal value of the old equipment. The original cost of the old equipment
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