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What is the sunk cost in this situation

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Reference no: EM131017623

Jason Company is considering replacing equipment that originally cost $600,000. New equipment costs $500,000, and the old equipment can be sold for $400,000. What is the sunk cost in this situation?

a. $600,000

b. $200,000

c. $400,000

d. $500,000

Reference no: EM131017623

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