J&H Company Has a Router Platform with a Book Value

question 77

Multiple Choice

J&H Company has a router platform with a book value of $65,000 and a three-year remaining life.A new router platform is available at a cost of $125,000,and J&H can also receive $16,000 for trading in the old router platform.The new router platform will reduce variable manufacturing costs by $31,000 per year over its three-year life.Should the router platform be replaced?

• A)Yes,as will increase income by $31,000 in total.
• B)Yes,as it is always important to have the current technology.
• C)No,it will decrease income by $16,000 in total.
• D)Yes,as the company will increase income by $16,000 total.
• E)J&H will be not be better or worse off by replacing the router platform.

---

Definitions:

Postpartum Depression

A complex mix of physical, emotional, and behavioral changes that many women experience after giving birth, characterized by sadness, fatigue, and anxiety.

Apgar Scale

A quick test performed on a newborn at 1 and 5 minutes after birth. The 1-minute score determines how well the baby tolerated the birthing process. The 5-minute score tells the healthcare provider how well the baby is doing outside the mother's womb.

Epidurals

A form of regional anesthesia involving an injection into the epidural space of the spine to block pain in a particular region of the body.

Behavioral Teratogens

Substances or exposures that can lead to developmental malformations or psychological issues due to prenatal exposure.