Precision Tool Is Analyzing Two Machines to Determine Which One

question 56

Multiple Choice

Precision Tool is analyzing two machines to determine which one it should purchase.The company requires a 15 percent rate of return and uses straight-line depreciation to a zero book value over the life of its equipment.Machine A has a cost of $892,000,annual operating costs of $28,200,and a 4-year life.Machine B costs $1,118,000,has annual operating costs of $19,500,and has a 5-year life.Whichever machine is purchased will be replaced at the end of its useful life.Precision Tool should purchase Machine _____ because it lowers the firm's annual cost by approximately _______ as compared to the other machine.

• A)A; $12,380
• B)A; $17,404
• C)B; $16,965
• D)B; $17,404
• E)B; $17,521

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Definitions:

Brain Shape

The form or morphology of the brain, which can influence cognitive abilities and behavior in various organisms.

Cognitive Ability

Refers to the capacity of the brain to process information, reason, remember, and relate objects and symbols to engage in abstract thinking and problem-solving.

Homo Naledi

A species of human ancestor discovered in South Africa, noted for its unique mix of primitive and modern traits.

Primitive Hominin Traits

Basic or ancestral characteristics exhibited by early human ancestors.