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

question 42

Multiple Choice

Two machines, A and B, which perform the same functions, have the following costs and lives.
$$\begin{array} { c r r } \text { Type } & \text { PV Costs } & \text { Life } \\\text { Machine A } & \$ 6000 & 5 \\\text { Machine B } & \$ 8000 & 7\end{array}$$
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:

Class Consciousness

The awareness and understanding of one's place in a system of social classes, especially as it relates to the struggle between those classes.

Marxist Concept

A framework derived from the works of Karl Marx, focusing on the conflict between classes, the role of labor, and the critique of capitalism.

Social Consciousness

The awareness shared by individuals within a society regarding social inequality, injustice, and the need for social change.

Planned Obsolescence

A policy of producing consumer goods that rapidly become obsolete and so require replacing, driven by design or functional limitations.