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