Kndrick Inc. is considering replacing a machine. The following data are available: Replacement Old Machine Replacement Machine Original cost $45,000 $35,000 Useful life in years 10 5 Current age in years 5 0 Book value $25,000 Disposal value now $8,000 Annual cash operating costs $7,000 $4,000

Which of the data provided in the table is a sunk cost? Group of answer choices the disposal value of the old machine the original cost of the old machine the annual cash operating costs of the old machine the annual cash operating costs of the new machine

The difference between keeping the old machine and replacing the old is: Group of answer choices $12,000 in favor of replacing the old machine $37,000 in favor of replacing the old machine $37,000 in favor of keeping the old machine $12,000 in favor of keeping the old machine