Bee Company Is Considering Replacing a Machine That Is Presently

question 115

Multiple Choice

Bee Company is considering replacing a machine that is presently used in the production of its product.The following data are available: $$\begin{array} { l r r } & \text { Old Machine } & \begin{array} { r } \text { Replacement } \\\text { Machine }\end{array} \\\text { Original cost } & \$ 67,000 & \$ 54,000 \\\text { Useful life in years } & 13 & 4 \\\text { Current age in years } & 9 & 0 \\\text { Book value } & \$ 32,000 & - \\\text { Disposal value now } & \$ 18,000 & - \\\text { Disposal value in 5 years } & \$ 1,000 & \$ 6,000 \\\text { Annual cash operating costs } & \$ 9,000 & \$ 7,000\end{array}$$ The _____ is irrelevant.

• A)annual operating cost of the old machine
• B)original cost of the replacement machine
• C)disposal value of the old machine
• D)disposal value in five years

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Definitions:

Rhin/o

A prefix in medical terminology referring to the nose.

Pneum/o

A prefix related to the lungs or air, used in medical terminology.

Py/o

Py/o is a prefix in medical terminology meaning pus.

Thorac/o

A prefix used in medical terms related to the chest or thoracic part of the body.