You Are Evaluating Two Different Machines

question 7

Multiple Choice

You are evaluating two different machines. Machine A costs $25,000, has a five-year life, and has an annual OCF (after-tax) of −$6,000 per year. Machine B costs $30,000, has a seven-year life, and has an annual OCF (after-tax) of −$5,500 per year. If your discount rate is 10 percent, using EAC which machine would you choose?

• A) Machine A
• B) Machine B
• C) All of these choices are correct.
• D) Neither machine A nor B

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Definitions:

Expressions of Spirit

Manifestations or demonstrations of the inner nature or soul of a person.

Transcendent God

A concept of a deity that exists beyond and independent from the material universe, often associated with major theistic religions.

Free-Will Solution

A theological and philosophical approach that addresses the problem of evil by attributing its existence to the free choices of individuals rather than to the design of the Creator.

Interfere

To prevent or alter the action or progress of something in a way that is not wanted or is seen as intrusive.