Answer the Following Questions Using the Information Below:
Indium Services

question 16

Multiple Choice

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

• A) $518,000 in favor of keeping the old machine
• B) $168,000 in favor of keeping the old machine
• C) $518,000 in favor of replacing the old machine
• D) $168,000 in favor of replacing the old machine

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Definitions:

Long-Term Human Orientation

An approach that emphasizes the importance of long-term relationships, sustainability, and ethical treatment of individuals within organizational or social contexts.

Social Relationships

Connections between individuals that are influenced by social networks, norms, and interactions.

Justifications

Reasons or explanations provided to support or rationalize decisions, actions, or beliefs.

New Values

The development or adoption of beliefs, principles, or standards that differ from existing ones, reflecting changes in societal, organizational, or individual perspectives.