When Deciding to Purchase a New Cutting Machine or Continue

question 120

Multiple Choice

When deciding to purchase a new cutting machine or continue using an existing machine, the following costs are all relevant except the:

• A) Original cost of the old machine.
• B) Cost (purchase price) of the new machine.
• C) Disposal (salvage) value of the old (existing) machine.
• D) Annual savings in operating costs if the new machine is purchased.
• E) Maintenance costs, if expected to be less under the new machine.

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Definitions:

Descending Abdominal Aorta

A part of the aorta that runs down through the abdomen, supplying oxygenated blood to abdominal organs.

Anterior Tibial Artery

A significant artery in the lower leg, supplying blood to the anterior compartment of the leg and the dorsal part of the foot.

Tibialis Anterior Muscle

A muscle in the front part of the lower leg that is involved in dorsiflexion and inversion of the ankle.