Sunk costs are costs that have already been incurred. They will not vary with the related options, therefore they are are irrelevant.
Out-of-pocket costs are actual cash outflows that have to be incurred and are relevant to the decision making process.
Replacement cost is the cost to replace an existing asset. It is relevant to the decision making process.
Differential costs are costs that differ between alternatives. They are relevant to the decision whether to accept or reject.
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