You are in charge of purchasing equipment for a construction firm. You just bought 5 new machines, each costing $1MM. After some market research, you concluded that: 2 machines can be sold in the secondary market for $500K 3 machines can be sold in the secondary market for $200K What are the sunk costs associated with purchasing the machines the 5 machines? $5 million $3.4 million $5000,000 $1.6 million
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