The manager didn't make the right decision according to this analysis because the cost of the old

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The manager didn't make the right decision according to this analysis because the cost of the old machine is "sunk" which means it can't be sold for any amount of money. Thus, if they replace the old machine, the total costs will be $140,000, not $150,000 that is the total costs of keeping the old machine. The manager could save up to $10,000 if (s)he decide to buy the new machine

Posted Date: May 18, 2024 06:06 PM

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The manager didn't make the right decision according to this analysis because the cost of the old

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