ELR Construction purchased a truck 6 years ago at a cost of $68800. Because the old truck required an overhaul of $5200 last year, and repairs of $2000 are needed in the current year, the company is now planning to purchase a new truck to replace the old one. The old truck has a trade-in value of $6500. The cost of the new truck is $84600. What amount of these costs represent sunk costs? 

Answer rating: 100% (QA)

Sunk costs are costs that have already been incurred and cannot be recovered or changed by any futur... View the full answer