Reference: 10-13
Jimbob Co Jimbob Co Uses a 10% Discount Rate and the Incremental Cost

question 36

Multiple Choice

Reference: 10-13
Jimbob Co. is considering two alternatives to replace some existing manufacturing equipment. The following data have been gathered concerning these two alternatives: $$\begin{array} { | l | l | l | } \hline & \text { Machine A } & \text { Machine B } \\\hline \text { Purchase cost new } & \$ 300,000 & \$ 300,000 \\\hline \text { Overhaul costs needed year 4 } & \$ 10,000 & 20,000 \\\hline \text { Annual cash operating costs } & \$ 130,000 & \$ 120,000 \\\hline \text { Salvage value at the end of 8 years } & \$ 20,000 & \$ 30,000 \\\hline\end{array}$$ Jimbob Co. uses a 10% discount rate and the incremental cost approach to capital budgeting analysis. Both alternatives are expected to have a useful life of eight years.
-Given the following data: $$\begin{array} { | l | l | } \hline \text { Present investment required } & \$ 12,000 \\\hline \text { Net present value } & \$ 430 \\\hline \text { Annual cost savings } & \$ ? \\\hline \text { Discount rate } & 12 \% \\\hline \text { Life of the project } & 10 \text { years } \\\hline\end{array}$$ Based on the data given, the annual cost savings would be:

• A)$2,123.89.
• B)$2,200.00.
• C)$1,630.00.
• D)$2,553.89.

Explain the physiological and behavioral adaptations of organisms to their specific biomes.

Understand the concept of ecological succession and its role in biome dynamics.

Understand the basic principles and mechanisms of climate and weather, including the distinction between them.

Comprehend the process of convection and its role in weather phenomena.

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Definitions:

Brand Tracking

The process of monitoring changes in consumer perceptions and attitudes towards a brand over time, often through regular surveys.

Comparative Performance

is the evaluation of the effectiveness or success of a product or service in relation to its competitors.

Health Check

An evaluation or assessment of the current state of health, whether for an individual, system, or organization, to identify areas needing improvement.

Cognitive

Related to the mental processes involved in gaining knowledge and comprehension, including thinking, knowing, remembering, judging, and problem-solving.