Chavez Company Is Considering Purchasing New Equipment or Overhauling Its

Chavez Company is considering purchasing new equipment or overhauling its existing equipment. The manager has gathered the following information:
Required:Identify the sunk costs associated with this decision.Compute the increase or decrease in total income over the five-year period if the company chooses to buy the new equipment.Compute the increase or decrease in total income over the five-year period if the company chooses to overhaul its existing machinery.What is your recommendation for this decision?