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:

Mature Ethnic Identity

The stage at which an individual has explored and fully understands their ethnic background, leading to a strong sense of belonging and acceptance of their cultural heritage.

Antidrug Norms

Societal standards and beliefs that oppose the use of illegal drugs and support behaviors that resist drug use.

Drug Problems

Issues arising from the abuse or dependency on illegal drugs or the misuse of prescription medications, leading to personal, social, or health consequences.

Internalizing Problems

Refers to psychological struggles that manifest internally, such as anxiety, depression, and excessive worry, often leading to withdrawn or inhibited behavior.