A Company Purchases Machinery Costing $60,000 in October of 2017

question 30

Multiple Choice

A company purchases machinery costing $60,000 in October of 2017.Five years later, management discovers better, more efficient machine that could be purchased for $80,000 to replace the existing machine.Management has determined that they are able to sell the original machine for $15,000.In making the decision about buying the new machine, how much are total sunk costs?

• A)$60,000
• B)$80,000
• C)$15,000
• D)$20,000

---

Definitions:

Smaller Groups

Groups with fewer participants, typically allowing for more personalized interaction and potentially greater cohesion.

Competition

The rivalry between entities to achieve superiority or a particular objective, often driving innovation and improvement.

Caregivers

Individuals who provide care for another person, typically a family member or patient, who is in need of support because of age, physical, or mental disability.

Empathy

The capacity to understand and share the feelings or experiences of another person, fostering stronger communication and relationships.