Answer the Following Questions Using the Information Below:
Frederick Company

question 210

Multiple Choice

Answer the following questions using the information below:
Frederick Company is considering replacing a machine.The following data are available:
$\begin{array}{lrr}&& \text { Replacement } \\&\text { Old Machine } & \text { Machine }\\\text { Original cost } & \$ 45000 & \$ 35000 \\\text { Useful life in years } & 10 & 5 \\\text { Current age in years } & 5 & 0 \\\text { Book value } & \$ 25000 & - \\\text { Disposal value now } & \$ 6000 & - \\\text { Disposal value in 5 years } & 0 & 0 \\\text { Annual cash operating costs } & \$ 6500 & \$ 4000\end{array}$
-For the decision to keep the old machine,the relevant costs of keeping the old machine total:

• A)$72 000
• B)$32 500
• C)$47 000
• D)$60 000

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Definitions:

Isolationism

A foreign policy strategy where a country aims to remain apart from the political affairs or interests of other countries.

Anti-war Sentiments

Feelings or attitudes of opposition towards military conflicts and war, often arising from ethical, moral, or pragmatic considerations.

Bonus Army

The group of World War I veterans who marched on Washington, D.C., in 1932 to demand early payment of a promised bonus for their service.

Mexican Americans

Americans of full or partial Mexican descent, constituting one of the largest Hispanic groups in the United States and contributing significantly to its cultural and social fabric.