Two Machines, a and B, Which Perform the Same Functions

question 62

Multiple Choice

Two machines, A and B, which perform the same functions, have the following costs and lives.

Which machine would you choose? The two machines are mutually exclusive and the cost of capital is 15 percent.

• A)Machine A, because the EAC is $1,789.89
• B)Machine B, because the EAC is $1,922.88
• C)Machine A, because it has lower PV costs
• D)Machine B, because it has longer life

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Definitions:

States

Politically defined territories that have organized governments, populations, and sovereignty over the land.

Political Organization

The way in which a society creates and structures its political institutions, processes, and relationships to make collective decisions and govern behavior.

Chiefdoms

A form of hierarchical political organization in non-industrial societies usually based on kinship, and led by a chief.

Hereditary

Relating to characteristics, properties, or conditions that are passed from parents to their offspring through genes.