if the firm computer has excess capacity it could be leased to another firm for a annual fee of 17,000?

Question

Is this sunk cost or opportunity cost

Answer 1

I don't know.

Is the question from your accounting homework? If it is, I'd bet the answer is in the book somewhere.

Answer 2

Opportunity cost: The cost of passing up the next best choice when making a decision. For example, if an asset such as capital is used for one purpose, the opportunity cost is the value of the next best purpose the asset could have been used for. Opportunity cost analysis is an important part of a company's decision-making processes, but is not treated as an actual cost in any financial statement.

Sunk cost: Cost already incurred which cannot be recovered regardless of future events.

Now you decide, opportunity cost it is