2. A company paid $200,000 eight years ago for a specialized machine that has no...
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Accounting
2. A company paid $200,000 eight years ago for a specialized machine that has no salvage value and is being depreciated at the rate of $20,000 per year. The company is considering using this machine in a new project that will have incremental revenues of $35,000 per year and annual cash costs of $17,000. In analyzing the new project, the $200,000 cost of the old machine is an example of a(n)? A. sunk cost. B. out-of-pocket cost. C. opportunity cost. D. incremental cost.
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