When Making the Decision to Replace an Old Factory Machine

question 164

Essay

When making the decision to replace an old factory machine with a new one,financial and non-financial factors are considered.As with any investment,a company investing in factory machinery expects that the new machinery will generate a future return.
Required:
a.Define the two types of returns that can be expected from investments in a long-term asset such as factory machinery.
b.List three financial factors that a company might consider before making an investment in factory machinery.
c.List three non-financial factors that a company might consider before making an investment in factory machinery.
d.List one cost that is not included in a decision to replace an old factory machine with a new one.

---

Definitions:

Biological Superiority

A controversial concept suggesting that some races or species are inherently superior to others based on biological differences.

Social Class

A division of society based on social and economic status, affecting individuals' opportunities, behavior, and lifestyle.

Social Class

A division of a society based on social and economic status, often determining access to resources and opportunities.

Hierarchy

A system in which members of an organization or society are ranked according to relative status or authority.