Raptor Company is considering replacing equipment which originally cost $500,000 and which has $420,000 accumulated depreciation to date. A new machine will cost $790,000 and the old equipment can be sold for $8,000. What is the sunk cost in this situation?
A) $72,000
B) $80,000
C) $88,000
D) $290,000

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The Answer of Raptor Company is considering replacing equipment which originally cost $500,000 and which has $420,000 accumulated depreciation to date. A new machine will cost $790,000 and the old equipment can be sold for $8,000. What is the sunk cost in this situation?
A) $72,000
B) $80,000
C) $88,000
D) $290,000

Raptor Company Is Considering Replacing Equipment Which Originally Cost $500,000