Answer the Following Questions Using the Information Below:
Flowers for Everyone

Multiple Choice

Answer the following questions using the information below:
Flowers For Everyone is considering replacing its existing delivery van with a new one.The new van can offer considerable savings in operating costs.Information about the existing van and the new van follow:
$$\begin{array} { l r r } & \text { Existing van } & \text { New van } \\\text { Original cost } & \$ 100000 & \$ 180000 \\\text { Antual operating cost } & \$ 33000 & \$ 20000 \\\text { Accumulated depreciation } & \$ 60000 & - \\\text { Current salvage value of the existing van } & \$ 45000 & - \\\text { Remaining life } & 10 \text { years } & 10 \text { years } \\\text { Salvage value in 10 years } & \$ 0 & \$ 0 \\\text { Antual depreciation } & \$ 4000 & \$ 18000\end{array}$$
-'Sunk costs' include:

A) the original cost of the existing van.
B) the annual operating cost of the new van.
C) the original cost of the new van.
D) the current salvage value of the existing van.