Stevens Company Is Considering Replacing a Machine That Is Presently

question 93

Multiple Choice

Stevens Company is considering replacing a machine that is presently used in the production of its product.The following data are available: $$\begin{array} { l r r } & \text { Old Machine } & \begin{array} { r } \text { Replacement } \\\text { Machine }\end{array} \\\text { Original cost } & \$ 60,000 & \$ 35,000 \\\text { Useful life in years } & 10 & 5 \\\text { Current age in years } & 5 & 0 \\\text { Book value } & \$ 25,000 & - \\\text { Disposal value now } & \$ 8,000 & - \\\text { Disposal value in } 5 \text { years } & 0 & 0 \\\text { Annual cash operating costs } & \$ 10,000 & \$ 4,000\end{array}$$ The total relevant costs to consider if the old machine is kept are _____.

• A)$60,000
• B)$50,000
• C)$52,000
• D)$30,000

---

Definitions:

Dependent Variable

In experimental and statistical research, the variable being tested and measured, expected to be influenced by an independent variable.

Protein-Enriched Diet

A nutritional plan high in proteins, designed to support muscle growth, repair, and overall health.

Maze-Running

A psychological or physical test where an individual or an animal must navigate through a complex path to reach a goal, often used in cognitive and behavioral experiments.

Experimental Group

In scientific research, the group that receives the treatment or intervention being tested, as opposed to a control group.