AFB,IncIs Considering Replacing an Old Machine with a New One

question 84

Multiple Choice

AFB,Inc.is considering replacing an old machine with a new one.Two months ago their chief engineer completed a training seminar on the new machine's operation and efficiency.The $3,000 cost for this training session has already been paid.If the new machine is purchased,it would require $7,000 in installation and modification costs to make it suitable for operation in the factory.The old machine originally cost $80,000 five years ago and is being depreciated by $10,000 per year.The new machine will cost $100,000 before installation and modification.It will be depreciated by $12,000 per year.The old machine can be sold today for $12,000.The marginal tax rate for the firm is 40%.Compute the relevant initial outlay in this capital budgeting decision.

• A) $79,500
• B) $97,800
• C) $90,800
• D) $87,800

Distinguish between short-run and long-run impacts of economic policies on unemployment and inflation.

Analyze the implications of changes in aggregate demand and aggregate supply on the economy.

Evaluate the role of expectations in shaping economic outcomes in the context of the Phillips curve.

Identify the factors that shift the Phillips curve and understand their implications.

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Definitions:

Specific Phobia

an intense, irrational fear of or aversion to a particular object, situation, or activity that poses little to no actual danger.

Intense Fear

A profound feeling of dread or terror, often triggered by perceived threats or dangerous situations.

Excoriation

A skin condition characterized by the repeated picking at one's own skin, often leading to sores and scars.

Compulsive Behavior

Repetitive, often ritualistic actions that an individual feels driven to perform, usually as a response to obsessive thoughts or to reduce anxiety.