Bruno SpA Is Analyzing Two Machines to Determine Which One

question 45

Multiple Choice

Bruno SpA is analyzing two machines to determine which one it should purchase.The company requires a 14% rate of return and uses straight-line depreciation to a zero book value.Machine A
Has a cost of €290,000, annual operating costs of €8,000, and a 3-year life.Machine B costs
€180,000, has annual operating costs of €12,000, and has a 2-year life.Whichever machine is
Purchased will be replaced at the end of its useful life.Which machine should Bruno's purchase and
Why? (Round your answer to whole euros.)

• A)Machine A; because it will save the company about €8,600 a year.
• B)Machine A; because it will save the company about €132,912 a year.
• C)Machine B; because it will save the company about €200,000 a year.
• D)Machine B; because it will save the company about €11,600 a year.
• E)Machine B; because its equivalent annual cost is €199,759.

Understand the influence of environmental factors such as light depth on photosynthetic activity.

Understand the concept and legal implications of implied and express warranties in transactions.

Recognize the distinctions between the types of warranties and how they apply to different situations.

Understand the requirements for a seller to be liable under the implied warranty of merchantability.

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Definitions:

Workers' Compensation Laws

Legislation designed to provide financial and medical benefits to employees who are injured or become ill as a direct result of their job.

Financial Compensation

Payment given to a person or entity as reimbursement for loss, injury, or suffering.

Injured on the Job

Pertains to an employee suffering physical or mental harm or illness as a direct result of their work or work environment.

Bona Fide Occupational Qualification

An employment qualification that is reasonably necessary for the normal operation of a particular business or enterprise, and can justify discrimination based on characteristics like religion, nationality, or gender in certain circumstances.