Smith Industries Is Considering Replacing a Machine That Is Presently

question 99

Multiple Choice

Smith Industries is considering replacing a machine that is presently used in its production process. The following information is available: $$\begin{array} { | l | r | r | } \hline & \text { Old Machine } & { \begin{array} { c } \text { Replacement } \\\text { Machine }\end{array} } \\\hline \text { Original cost } & \$ 45,000 & \$ 35,000 \\\hline \text { Remaining useful life in years } & 5 & 5 \\\hline \text { Current age in years } & 5 & 0 \\\hline \text { Book value } & \$ 25,000 & \\\hline \text { Current disposal value in cash } & \$ 8,000 & \\\hline \text { Future disposal value in cash (in 5 years) } & \$ 0 & \$ 0 \\\hline \text { Annual cash operating costs } & \$ 7,000 &\$4,000 \\\hline\end{array}$$ Which of the information provided in the table is irrelevant to the replacement decision?

• A) the price of the new machine
• B) the original cost of the old machine
• C) the current disposal value of the old machine
• D) annual operating costs

Recognize how physical attractiveness and proximity influence relationship formation and maintenance.

Analyze the role of similarity and reciprocated feelings in the strength and development of relationships.

Understand strategies for managing interpersonal conflicts and dialectical tensions.

Comprehend the effects of relationship perceptions and classifications on interpersonal dynamics.

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Definitions:

Non-Financial Measures

Performance indicators not expressed in monetary terms, often related to customer satisfaction, employee engagement, or quality.

Hidden Costs

Expenses that are not directly accounted for in the budget of a project or a product pricing, often overlooked or unknowingly incurred.

Environmental Costs

Expenses incurred by companies to prevent, detect, and correct environmental damage they have caused.

Prime

In finance, often refers to the prime rate, which is the interest rate banks charge their most creditworthy customers. In manufacturing, can also mean prime costs, which are direct costs of production.