Rocko Inchas a Machine with a Book Value of $50,000 and and a Five-Year

question 54

Multiple Choice

Rocko Inc.has a machine with a book value of $50,000 and a five-year remaining life.A new machine is available at a cost of $85,000 and Rocko can also receive $38,000 for trading in the old machine.The new machine will reduce variable manufacturing costs by $14,000 per year over its five-year life.Should the machine be replaced?

• A)Yes,because income will increase by $14,000 per year.
• B)Yes,because income will increase by $23,000 in total.
• C)No,because the company will be $23,000 worse off in total.
• D)No,because the income will decrease by $14,000 per year.
• E)Rocko will be not be better or worse off by replacing the machine.

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Definitions:

Infant Survival

The probability or rate of survival of newborn organisms through their earliest stages of life, often influenced by factors like genetic health, parental care, and environmental conditions.

Balanced Polymorphism

A situation in which two or more alleles of a gene persist in a population because the survival advantage or disadvantage of each balances out.

Heterozygote Advantage

The phenomenon where individuals with two different alleles for a particular trait have a greater fitness than those with two identical alleles.

Frequency-Dependent Selection

A process of evolution whereby the success and reproductive viability of a genotype or phenotype is influenced by its commonness or rarity in comparison to other genotypes or phenotypes within the same population.