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

Appreciate the ethical considerations in conducting research, including the importance of participant expectations.

Understand the concept and calculation of Mean Absolute Deviation (MAD) in forecasting.

Identify and explain various types of forecasts including technological, moving averages, and exponential smoothing.

Apply exponential smoothing forecast technique with given data.

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