Bradley Industries Is Considering Replacing a Machine That Is Presently

question 23

Multiple Choice

Bradley Industries is considering replacing a machine that is presently used in its production process. Which of the following is irrelevant to the replacement decision?
$\begin{array}{|l|r|r|} \hline& \text { Old Machine } & \begin{array}{c}\text { Replacement } \\\text { Machine }\end{array} \\\hline \text { Original cost } & \$ 60,000 & \$ 45,000 \\\hline \text { Remaining useful life in years } & 5 & 5\\\hline \text { Current age in years } & 5&0 \\\hline \text { Book value } & \$ 30,000 \\\hline \text { Current disposal value in cash } & \$ 9000 & \\\hline \text { Future disposal value in cash (in 5 years) } & \$ 0 & \$ 0 \\\hline \text { Annual cash operating costs } & \$ 7000 & \$ 4500 \\\hline\end{array}$ Which of the information provided in the table is irrelevant to the replacement decision?

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

Understand Erik Erikson’s stages of psychosocial development, especially during middle to late adulthood.

Examine the effects of parenting styles and external factors on child development and adult behavior.

Recognize the impacts of physical exercise and lifestyle choices on cognitive functioning and brain health in older adults.

Analyze the phenomenon of aging from psychological, biological, and social perspectives.

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Definitions:

Stabilize Output

An economic strategy aiming to maintain consistent levels of production and minimize fluctuations in an economy.

Unemployment Insurance

Unemployment insurance is a government program that provides temporary financial assistance to individuals who have lost their job through no fault of their own, aiming to mitigate economic hardship.

Federal Reserve

The Federal Reserve is the central banking system of the United States, responsible for monetary policy, regulation of financial institutions, and stability of the financial system.

Interest Rates

The cost of borrowing money or the rate paid for deposits, typically expressed as a percentage.