A Currently Used Machine Costs $10,000 Annually to Run

question 50

Multiple Choice

A currently used machine costs $10,000 annually to run.What is the maximum that should be paid to replace the machine with one that will last three years and cost only $4,000 annually to run? The opportunity cost of capital is 12 percent.

• A)$2,000
• B)$9,607
• C)$14,411
• D)$24,018

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Definitions:

Eye-hand Coordination

The synchronized control of eye movement with hand movement, enabling tasks such as catching, throwing, and precise manipulation.

Categorization

An adaptive mental process in which objects are grouped into conceptual categories, allowing for organized storage of information in memory, efficient retrieval of that information, and the capacity to respond with familiarity to new stimuli from a common class.

Information Processing

The means by which individuals perceive, analyze, manipulate, store, and recall information.

Working Memory

A mental system tasked with briefly maintaining data for processing.