A company paid $200,000 ten years ago for a specialized machine that has no salvage value and is being depreciated at the rate of $10,000 per year. The company is considering using the machine in a new project that will have incremental revenues of $28,000 per year and annual cash expenses of $20,000. In analyzing the new project, the $20,000 of annual cash expenses is an example of a(n) : Multiple Choice Fixed costs. Out-of-pocket costs. Opportunity costs. Variable costs. Sunk costs. An individual was evaluating alternative courses of action related to work and college. The individual could continue to work full-time and attend school part-time at night (it would take 10 (ears to graduate). Or the individual could resign and attend school full-time (and graduate in 5 years). If this individual decides to resign and go to college full-time, what are the wages ost, by not working, called? Multiple Choice Incremental costs. Variable costs. Opportunity costs. Sunk costs. Out-of-pocket costs
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