The Terminal Disposal Price of a Replacement Machine

question 27

Multiple Choice

The terminal disposal price of a replacement machine

• A)generally increases cash inflow in the year of disposal.
• B)is the total of the salvage values of the old machine and the new machine.
• C)is the salvage value of the old machine.
• D)is the NPV value of the new machine salvage value.
• E)is the NPV of the salvage value of the old machine.

---

Definitions:

Abdominal Muscles

A group of muscles in the abdomen involved in the movement of the trunk, assistance in breathing, and support of the spine, including the rectus abdominis, obliques, and transversus abdominis.

Internal Intercostals

Muscles located between the ribs that, during exhalation, decrease the volume of the thoracic cavity to expel air from the lungs.

External Intercostals

Muscles located between the ribs, aiding in the mechanics of breathing by elevating the ribcage.

Intrapulmonary Pressure

The pressure within the alveoli of the lungs, vital for the process of inhalation and exhalation.