You Are Considering the Purchase of One of Two Machines

question 17

Multiple Choice

You are considering the purchase of one of two machines used in your manufacturing plant. Machine A has a life of two years, costs $20,000 initially, and then $4,000 per year in maintenance costs. Machine B costs $25,000 initially, has a life of three years, and requires $3,500 in annual maintenance costs. Either machine must be replaced at the end of its life with an equivalent machine. Which is the better machine for the firm? The discount rate is 14 percent and the tax rate is zero.

• A)Machine A
• B)Machine B
• C)Both machines A and B
• D)Neither machine A nor B

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Definitions:

Structural Inequalities

Systemic disparities in access to resources, opportunities, and rights across different societal groups, often rooted in historical and institutional prejudices.

Privileged Position

refers to a status that gives certain individuals or groups advantages or benefits not widely available to others, often due to socio-economic factors, race, or gender.

White Privilege

The societal privileges that benefit white people beyond what is commonly experienced by non-white people under the same social, political, or economic circumstances.

Unearned Advantage

Privileges and benefits one receives without effort or merit simply because of societal biases towards certain groups.