Question: 1. What is an opportunity cost? How does it differ from a sunk cost? 2. Campbell Company is faced with deciding whether to replace machine

1. What is an opportunity cost? How does it differ from a sunk cost?

2. Campbell Company is faced with deciding whether to replace machine A or machine B. The original cost of machine A was $20,000 and that of machine B was $30,000. Because the two cost figures differ, they are relevant to Campbell Companys decision. Do you agree?

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