Answer the Following Questions Using the Information Below:
Indium Services

question 95

Multiple Choice

Answer the following questions using the information below:
Indium Services, Inc., is considering replacing a machine. The following data are available:
$$\begin{array}{l}\begin{array} { l r r } &&\text { Replacement }\\& \text { Old Machine } & \text { Machine } \\\text { Ori ginal cost } & \$ 630,000 & \$ 490,000 \\\text { Useful life in years } & 10 & 5 \\\text { Current age in years } & 5 & 0 \\\text { Book value } & \$ 350,000 & - \\\text { Disposal value now } & \$ 112,000 & - \\\text { Disposal value in } 5 \text { years } & 0 & 0 \\\text { Antual cash operating costs } & \$ 98,000 & \$ 56,000\end{array}\end{array}$$
-Which of the data provided in the table is a sunk cost?

• A) the annual cash operating costs of the old machine
• B) the annual cash operating costs of the replacement machine
• C) the disposal value of the old machine
• D) the original cost of the old machine

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Definitions:

Resilient Children

Children who are able to withstand and recover quickly from difficult conditions or situations.

Recruitment

The process of identifying, attracting, interviewing, selecting, hiring, and onboarding employees.

Stress

A state of mental or emotional strain resulting from adverse or demanding circumstances.

Blended Family

A family unit where at least one parent has children from a previous relationship, mixing biological and step-relations within the household.