Pineapple Ltd Is Considering Replacing Its Current Stock of Computers

question 57

Multiple Choice

Pineapple Ltd is considering replacing its current stock of computers with a new model.It plans to evaluate three options based on the following information:
Management is considering three options:
(i) Replace the old computers now and operate Model XA for four years,then replace with Model XD and operate for eight years,to be replaced in perpetuity;
(ii) Replace the old computers now and operate Model XXD for 12 years,to be replaced in perpetuity;
(iii) Replace the old computers now and undertake Model XA for three times its estimated life.
Which option should management choose?

• A)Option (i).
• B)Option (ii).
• C)Option (iii).
• D)Indifferent between options (i)and (ii).

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Definitions:

Pros

Advantages or positive aspects of a situation or decision.

Concerns

Issues or matters that cause worry or occupy one's thoughts, often related to personal, social, or environmental factors.

Operant Conditioning

A method of learning that employs rewards and punishments for behavior, creating an association between the behavior and the consequence for that behavior.

Alcohol Use Disorders

Medical conditions characterized by an impaired ability to stop or control alcohol use despite adverse social, occupational, or health consequences.