You Can Continue to Use Your Less Efficient Machine at a Cost

question 2

Multiple Choice

You can continue to use your less efficient machine at a cost of $8,000 annually for the next 5 years. Alternatively, you can purchase a more efficient machine for $12,000 plus $5,000 annual maintenance. At a cost of capital of 15%, you should:

• A) buy the new machine and save $600 in equivalent annual costs.
• B) buy the new machine and save $388 in equivalent annual costs.
• C) keep the old machine and save $388 in equivalent annual costs.
• D)keep the old machine and save $580 in equivalent annual costs.

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Definitions:

Campus Sexual Violence Elimination (SaVE) Act

U.S. legislation aimed at increasing transparency about campus sexual violence and improving rights and support for victims.

Sexual Assault

Any type of sexual activity or contact that happens without the explicit consent of the recipient.

Legal Liability

A legal responsibility for one's actions or omissions that may result in a civil lawsuit or criminal charges.

Sexually Assaulted

To be subjected to unwanted or forcible sexual contact or activity.