A Company Needs to Buy a Machine to Produce Widgets

question 18

Multiple Choice

A company needs to buy a machine to produce widgets and the annual interest rate is 9%.They have narrowed their choices to the following 3 machines:
Machine X - annual cost = $4,005
Machine Y - capitalized cost = $49,970,produces 10% more widgets per year than machine X
Machine Z - capitalized cost = $40,900,produces 10% fewer widgets per year than machine X
From a financial point of view,which machine should the company buy?

• A)X
• B)Y
• C)Z
• D)Cannot be determined

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Definitions:

Nuclear Equivalence

The principle suggesting that all somatic cells of an organism have the same genetic material and therefore, in theory, have the potential to develop into any type of cell or even a whole organism.

Differential Gene Expression

The process by which genes are turned on or off in different cell types, allowing for cellular diversity and function.

Teratogen

Any agent capable of interfering with normal morphogenesis in an embryo, thereby causing malformations; examples include radiation, certain chemicals, and certain infectious agents.

Morphogenesis

The biological process that causes an organism to develop its shape and structure.