Nighthawk Inc

question 124

Multiple Choice

Nighthawk Inc. is considering disposing of an old machine with a book value of $22,500 and an estimated remaining life of three years. The old machine can be sold for $6,250. A new machine with a purchase price of $68,750 is being considered as a replacement. It will have a useful life of three years and no residual value. It is estimated that the annual variable manufacturing costs will be reduced from $43,750 to $20,000 if the new machine is purchased. The differential effect on income for the entire three years for the new machine is a (n)

• A) $8,750 increase
• B) $31,250 decrease
• C) $8,750 decrease
• D) $2,925 decrease

---

Definitions:

Negative Reinforcers

A stimulus whose removal after a response strengthens the likelihood of that response occurring in the future.

Tentative

Not certain or fixed; provisional, subject to further confirmation.

ADHD

Attention Deficit Hyperactivity Disorder, a neurodevelopmental disorder characterized by problems with focus, hyperactivity, and impulsiveness.

Important Tasks

Essential activities or assignments that need priority attention to achieve goals or objectives.