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23 Nov 2019

A company paid $200,000 ten years ago for a specialized machinethat has no salvage value and is being depreciated at the rate of$10,000 per year. The company is considering using the machine in anew project that will have incremental revenues of $28,000 per yearand annual cash expenses of $20,000. In analyzing the new project,the $200,000 original cost of the machine is an example ofa(n):

Incremental cost.

Opportunity cost.

Variable cost.

Sunk cost.

Out-of-pocket cost.

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Beverley Smith
Beverley SmithLv2
9 Sep 2019
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