Nighthawk Inc

question 71

Multiple Choice

Nighthawk Inc. is considering disposing of a machine with a book value of $22,500 and an estimated remaining life of three years. The old machine can be sold for $6,250. A new machine with a purchase price of $68,750 is being considered as a replacement. It will have a useful life of three years and no residual value. It is estimated that the annual variable manufacturing costs will be reduced from $43,750 to $20,000 if the new machine is purchased. The net differential increase or decrease in cost for the entire three years for the new equipment is:

• A) $8,750 increase
• B) $31,250 decrease
• C) $8,750 decrease
• D) $2,925 decrease

---

Definitions:

Humanistic Approach

A psychological perspective emphasizing empathy and stresses the good in human behavior, focusing on self-actualization and personal growth.

Free Will

The ability to make choices that are not predestined by past events, genetics, or environmental influences, highlighting human autonomy.

Poorly Defined

Refers to concepts, terms, or ideas that are not clearly elaborated or explained, making their understanding vague or incomplete.

Rogers

A reference to Carl Rogers, a prominent psychologist known for his contributions to humanistic psychology and the concept of person-centered therapy.