Question: lago Ltd bought a machine two years ago for 500. They must now replace the old machine by buying a new model 206 for 700

lago Ltd bought a machine two years ago for 500. They must now replace the old machine by buying a new model 206 for 700 or a used model 204 for 650. Noel has decided to buy model 204. In making this decision, lago Ltd would consider the sunk cost to be: 700 650 500 50

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