In making the decision regarding buying the new machine how

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A company purchases machinery costing $50,000 in October of 2006. Five years later they discover a better, more efficient machine they could purchase to replace the existing machine. The new machine costs $90,000 and the company has determined that they would be able to sell the original machine for $30,000. In making the decision about buying the new machine, how much are total sunk costs?

A. $60,000

B. $40,000

C. $50,000

D. $10,000

Reference no: EM13394940

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