A company is planning to replace an old machine with a new one.Which of the following is a sunk cost?

Name: A company is planning to replace an old machine with a new one.Which of the following is a sunk cost?
Brand: Quizplus
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Question

Quizplus · Accepted Answer

Sunk costs are costs that have already been incurred and cannot be recovered. The original cost of the old machine is a sunk cost because it has already been incurred and cannot be recovered. Options A, B, and C are not sunk costs because they relate to future or potential costs or revenues.

A Company Is Planning to Replace an Old Machine with a New