Two Machines, a and B, Which Perform the Same Functions

question 50

Multiple Choice

Two machines, A and B, which perform the same functions, have the following costs and lives. Which machine would you choose? The two machines are mutually exclusive and the cost of capital is 15%.

• A) Machine A as the EAC is $1789.89
• B) Machine B as the EAC is $1922.88
• C) Don't buy either machine
• D) Accept both A and B

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Definitions:

Thyroid

A gland located in the neck that produces hormones regulating the body's metabolic rate as well as heart and digestive function, muscle control, brain development, and bone maintenance.

Thalamus

A structure in the brain that relays motor and sensory signals to the cerebral cortex.

Pituitary

A small gland at the base of the brain that produces hormones which regulate growth and the function of other glands in the body.

Split-Brain Surgery

A medical procedure involving the severance of the corpus callosum to treat severe epilepsy, leading to altered communication between the two hemispheres of the brain.