Question: Ruby Company is considering replacing an old machine that originally cost $105,000. A new machine will cost $900,000, and the old machine can be sold

Ruby Company is considering replacing an old machine that originally cost $105,000. A new machine will cost $900,000, and the old machine can be sold for $30,000. What is the sunk cost in this situation?

a. $25,000

b. $120,000

c. $95,000

d. $105,000

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