# Current Attempt in ProgressSwifty Corporation is contemplating the replacement of an oldmachine with a new one. The following information has beengathered:Old MachineNew Machine\$420000\$210000PriceAccumulated Depreciation63000-0-10 yearsRemaining useful life-0-10 yearsUseful life-0-Annual operating costs\$126000\$168000If the old machine is replaced, it can be sold for \$16800.Which of the following amounts is a sunk cost?O \$420000o \$126000O \$147000O \$168000

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Step 1

Sunk cost: Sunk cost is the cost that has been incurred as a result of past events and such cost may not be affected as a result of future actions.

Step 2

Given information:

Old machine price=\$210,000

Accumulated depreciation =\$63,000

Step 3

Calculate the sunk cost...

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