In Deciding Whether an Organization Will Keep an Old Machine

question 80

Multiple Choice

In deciding whether an organization will keep an old machine or purchase a new machine,a manager would ignore the

• A)estimated disposal value of the old machine.
• B)acquisition cost of the old machine.
• C)operating costs of the new machine.
• D)estimated disposal value of the new machine.

---

Definitions:

Myopic Loss Aversion

The tendency of investors to react disproportionately to short-term losses compared to long-term gains.

Financial Market Downturn

A period of declining asset prices in the financial markets, often marked by investor uncertainty or negative economic indicators.

Retirement Savings

Funds that individuals set aside and invest to provide income and financial security for retirement.

Insured Bank Account

A bank account protected by a government or private entity against the loss of funds up to a certain amount.