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Arestaurant buys a pizza oven for $5,000 and can resell it in 5 years for $2,000. The sunk cost is O $5,000. $7,000. O $2,000
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Answer #1

Sunk cost is the value which a producer is not able to recover.  

Sunk cost= Cost to buy asset - Salvage value

Sunk cost = $5000 - $2000

Sunk cost = $3000

Option d is the correct answer

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