The Manufacture of Folic Acid Is a Competitive Business

question 71

Multiple Choice

The manufacture of folic acid is a competitive business. A new plant costs $100,000 and lasts for three years. The cash flow from the plant is as follows: year 1: +$43,300; year 2: +$43,300; and year 3: +$58,300. (Assume no taxes.) If the salvage value of the plant at the end of year 1 is $80,000, should you scrap the plant at the end of year 1?

• A)Yes
• B)No
• C)More information is needed.
• D)I don't know.

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Definitions:

Stage 2 Hypertension

A condition where blood pressure readings consistently show systolic pressure of 140 mm Hg or higher or diastolic pressure of 90 mm Hg or higher.

Blood Pressure

The force exerted by circulating blood on the walls of blood vessels, a critical measure of cardiovascular function and health.

Prehypertension

A condition where blood pressure is higher than normal but not yet high enough to be classified as hypertension, indicating an increased risk of developing high blood pressure.

Blood Pressure

The force exerted by circulating blood on the walls of blood vessels, crucial for maintaining bodily functions.