Question: Multiple Choice Question Oliver Company owns a machine with a current book value of $ 5 0 , 0 0 0 and a current market

Multiple Choice Question

Oliver Company owns a machine with a current book value of $

50, 000

and a current market value of $

20, 000 .

The operating expenses are $

9, 000

per year and the machine is expected to last

3

more years. At that time, it will have a salvage value of $

2, 000 .

Oliver is evaluating whether to sell the machine and purchase a new machine that will have lower operating expenses. What is the sunk cost related to Oliver's decision?

Multiple choice question.

27, 000

18, 000

50, 000

20, 000

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